Walsh says Heathrow does not have the ability to ring fence slots to increase domestic flight routes
A row has emerged between British Airways and Heathrow over the airport leading domestic airports to believe they will get air links to Heathrow, if it builds a 3rd runway. Heathrow has written to the government asking it to “ring-fence” a proportion of its take-off and landing slots for domestic flights. But BA has replied that Heathrow does not have any standing to control destinations served by the slots. Willie Walsh, IAG’s CEO said: “It’s not in Heathrow’s gift to increase domestic flying from the airport … Airlines, not airports, decide where to fly based on routes’ profitability.” He wants Heathrow to keep its charges down, so IAG’s airlines can keep growing and making more money. Walsh says only with low airport charges would there be many domestic flights, as they are otherwise not profitable. Currently, only 6% of passengers travel on domestic flights from Heathrow. It has links to 8 UK destinations. Heathrow has told several airports that it will pay for a Route Development Fund, for 3 years, to subsidise some routes and get them going. It has not said it would subsidise them indefinitely. European regulations restrict how much flights to small airports can be subsidised, due to competition concerns. Heathrow has depended on backing for its runway plans, from some regional airports, which have been led to believe they will benefit from it.
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Row emerges over Heathrow plan to ring fence slots to expand domestic flights
by Phil Davies (Travel Weekly)
May 22nd 2017
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Row emerges over Heathrow plan to ring fence slots to expand domestic flights
A row has emerged between British Airways and Heathrow over the airport’s hopes to increase domestic flights once it gets a third runway.
Heathrow has written to the government asking it to “ring-fence” a proportion for domestic flights of the extra take-off and landing slots created.
But BA has hit out at the plan, saying that the airport does not have any standing to control destinations served by the slots, the Daily Telegraph reported.
“It’s not in Heathrow’s gift to increase domestic flying from the airport,” said BA’s owner, International Airlines Group.
“Airlines, not airports, decide where to fly based on routes’ profitability.”
BA is based at Heathrow and has about half of the take off and landing slots currently available.
The airline called for competitive fees to encourage flights at Heathrow, adding: “The best way to encourage domestic routes is for the airport to be fairly priced.
“It’s hard to make routes viable if airlines are charged more at Heathrow than any other airport. If costs are low, flights will follow.”
Heathrow handles almost 76 million passengers a year and about 470,000 flights, making it the busiest airport in Europe and the seventh busiest in the world.
If the plans to add the third runway go ahead, the airport is expected to see flights increase to more than 700,000 a year.
Currently, only 6% of passengers travel on domestic flights from Heathrow to eight UK destinations, though this could soar if plans go ahead to add more UK services.
The airport is only able to ask for the slots to be earmarked because of Brexit, as once the UK leaves the European Union it will not be controlled by the bloc’s competition rules.
A Heathrow spokesman said: “We’ve always been clear that an expanded Heathrow must deliver for all of Britain and that’s why we’re urging the government to back our proposal to ring-fence slots at an expanded Heathrow for domestic use, an opportunity now possible because Britain is leaving the EU.”
The row followed foreign secretary and former London mayor Boris Johnson claiming a third runway is “not the right solution” for airport expansion.
The long-term critic of Heathrow expansion was quoted by ITV News as saying an additional runway at the London hub would be “very difficult to deliver” despite the Conservative election manifesto backing development of the airport.
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The image above says these are “Potential new routes based on potential route maps published by easyJet and Flybe” [ie. just aspirational … with zero certainty]
Local campaign group, HACAN, has said Heathrow’s claims that a third runway would deliver a lot more routes to domestic destination ‘should be taken with a pinch of salt’. HACAN, a residents’ organisation which opposes a new runway, warned people to read the small print of the announcement very carefully indeed.
Heathrow in its response to the Government’s consultation argued that there could be as many as thirteen new domestic routes (see Heathrow’s map above) but admits in the small print that the ‘potential new routes are based on potential route maps published by easyjet and Flybe.’ Easyjet has not confirmed yet that it will come to Heathrow even if a third runway is built.
HACAN Chair John Stewart claimed that Heathrow’s claims were based on evidence ‘so flimsy that it could fall apart at any moment’.
He said, “Heathrow’s claims should be taken with a pinch of salt. The intention is more to try to reassure the regions that a third runway could benefit them rather than a serious prediction about the number of domestic destinations a third runway will serve.”.
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