Airport News

Below are news items relating to specific airports

 

Plan B Earth case for Supreme Court appeal by Heathrow, against Appeal Court ruling that ANPS was illegal, due to Paris Agreement

On 7th and 8th October, there will be a Supreme Court hearing of the appeal, by Heathrow airport, against the ruling by the Appeal Court in February 2020 that the Government's Airports National Policy Statement (ANPS) was illegal. Heathrow cannot proceed with plans for a 3rd runway, without a legal ANPS.  The government itself decided not to challenge the Appeal Court decision - it is only Heathrow.  Friends of the Earth and Plan B Earth are defending the case. The decision of the Appeal Court was due to the failure of the ANPS to properly take into account the UK's commitment to the Paris Agreement (aiming to keep global climate warming to 1.5C) and thus its duty to keep carbon emissions from rising. Plan  B Earth has published its response, challenging the Heathrow claim that the Paris Agreement is "not" government policy.  It is a 29 page document, but the conclusion is copied here. It states that: "At the time of the designation of the ANPS in June 2018, the Secretary of State (SST) [Chris Grayling] knew, or ought to have known, that the Government had: a) rejected the 2˚C temperature limit as creating intolerable risks, in the UK and beyond  b) committed instead to the Paris Agreement and the Paris Temperature Limit, and that it had  c) committed to introducing a new net zero target in accordance with the Paris Agreement.  These matters were fundamental to Government policy relating to climate change and it was irrational for the SST to treat them as irrelevant.

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Heathrow urged by 5 councils to end 3rd runway ‘fantasy’ – instead focus on cutting CO2 and noise

Councils have called on Heathrow to abandon once and for all its bid for a third runway and concentrate instead on working with the aviation industry to achieve zero carbon emissions and reduce noise impacts for overflown communities. Heathrow is due to challenge February’s Court of Appeal ruling against the expansion plan in October  (7th and 8th) at the Supreme Court. The 5 councils, (Hillingdon, Wandsworth, Richmond upon Thames, Hammersmith and Fulham, and Windsor and Maidenhead) say there is no logic in the airport persisting with its runway fantasy. Cllr Gareth Roberts, Leader of Richmond Council, said: "COVID-19 has changed everything. This is a unique period when we are all rethinking traditional assumptions about how we work, travel and grow our economies. As local councils we want the industry to get back on its feet. But this won't work without a fundamental rethink about the place of aviation in our society – and indeed where future capacity is most needed. Even Heathrow's chief executive has admitted that a new runway would not be needed for years due to the pandemic. Yet still the airport and its shareholders press on with the process and the prize of a planning permission for a runway that will never be built."

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Tax-free sales by airports, ports etc for overseas visitors to end by 1st Jan 2021, with lower duty-free import allowances

The UK government is set to end tax-free sales at airports, ports and Eurostar stations from 1 January 2021. As the Brexit transition period comes to an end, the UK government cited “concerns over how the benefit is passed on to passengers and in some instances, the relief is not consistent with international tax principles.” The VAT retail export scheme, which currently enables EU visitors to claim refunds on goods purchased in the UK, will also be withdrawn from the same date. The airports are unhappy about this, as it will cut their income, and some jobs would be lost.  The Treasury said: "Overseas visitors  - including in the EU - will still be able to buy items VAT-free in store and have them sent direct to their overseas addresses, while the costly system of claiming VAT refunds on items they take home in their luggage will be ended.” It described the scheme as “a costly relief, which does not benefit the whole of Britain equally”, adding that the current use is mostly centred in London. Visitors arriving from EU and non-EU countries will be allowed 42 litres of beer, 18 litres of still wine and 9 litres of sparkling wine duty free from 1.1.2021 (much lower than currently).

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Heathrow area risks fate of 1980s mining towns, says airport boss – area too dependent on the airport

Perhaps even more than other airports like Gatwick and Luton, a large part of the economy around Heathrow has become over-dependent on the airport. Now the CEO of Heathrow, John Holland-Kaye has said boroughs like Hounslow risk becoming like “a mining town in the 1980s” with the collapse in air traffic putting tens of thousands of jobs at risk. Many more people work in businesses associated with Heathrow, than directly for the airport itself.  In August, Heathrow had around 1.4 million passengers, which is less than 20% of its "normal" amount.  People are not flying for leisure, due to the risk of Covid itself, or the need to quarantine. There are few business trips, as they are being replaced by Zoom etc.  Many in the aviation sector do not think levels of flying will return to their 2019 levels for 2-3 years, or more - if ever.  Heathrow had losses of £1.1bn in the first half of 2020. Recently Heathrow issued formal section 188 notices, allowing it to potentially fire and rehire some 4,700 employees, after months of negotiations with unions representing its directly employed ground staff failed to produce an agreement. Section 188 means the airport can bypass negotiations after a 45-day period has elapsed. There might overall be 25,000 Heathrow-related job losses.

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Heathrow saddled with £504 million bill from thwarted expansion

Heathrow has been left with a £500M bill from its thwarted 3rd runway expansion. The airport chose to spend a lot up-front, in its plans to get a new runway, even before waiting for the legal challenges and approval of its DCO (Development Consent Order). Heathrow hoped it could charge airlines using the airport for these costs. It was always a risk that the runway would not happen, and the money spent in promoting it and planning for it would be sunk. The  Court of Appeal ruled against the Airports NPS in February, on grounds of the carbon emissions the 3rd runway would generate. The appeal by Heathrow will be heard on 7th and 8th October.  Meanwhile the CAA has restricted the amount Heathrow can charge airlines - and now there has been a massive reduction in Heathrow air traffic, and income, due to Covid. The New Civil Engineer gives a breakdown of what Heathrow (unwisely) spent, in the expectation the runway would definitely go ahead. According to the CAA’s Economic regulation of Heathrow: policy update and consultation, the costs are broken down into £394M of planning (category B) and £110M of early construction (category C) costs.  These include ground investigations, all sorts of advisors, and designers.

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BA hits out over £500m bill (Category B costs) for Heathrow failed 3rd runway plans that it wants to pass on to airlines

A row has erupted between Heathrow and British Airways, its largest airline, over the plans to get airlines to pay the £500m bill relating to the airport’s third runway expenses so far. A regulatory consultation by the CAA recommends allowing Heathrow to charge carriers for expansion costs incurred until February this year. These are called "Category B" (£500m) and early "Category C" costs, associated with getting planning consent.  CAA regulations allow Heathrow to increase charges in line with costs incurred.  Willie Walsh, the outgoing boss of IAG, that owns BA, has repeatedly clashed with Heathrow over the framework, which he has said encourages the airport to “spend recklessly."  IAG has never wanted to pay for Heathrow's costs in developing the runway (partly as the extra capacity at Heathrow would increase competition with BA by other airlines). CAA director Richard Stephenson said it was reviewing responses to the ­consultation (held in summer 2019) and had yet to make a ­decision.  Heathrow has pressed ahead, spending a great deal on its runway plans, even before legal obstacles had been cleared. The restriction of early spending by the CAA meant a delay in the runway timetable of 2-3 years.

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Luton Council’s £60m loan to Luton Airport company set for approval ‘in private’

A £60m loan by Luton Borough Council to its airport company is set for approval, in private, by the executive later this month. The first of two emergency loans - together totalling £83m - has gained the support of Luton Council’s scrutiny finance review group, at the second attempt. The second loan worth £23m to London Luton Airport Limited (LLAL) is scheduled for the 2021/22 financial year, after the council’s emergency budget in July.  The Labour controlled council were forced by the Liberal Democrats to discuss the loan report in public. But officers asked for the council to take legal advice and defer the issue. It seems that 5 five Labour councillors recommended the council's executive approve the £60m loan deal, with the 3 Liberal Democrats in opposition.  The executive will formally decide upon the loan at its meeting on Monday, September 14th. The Liberal Democrats said the almost £400m in loans are secured against the assets of the company. "But, the council already owns all of LLAL’s assets by virtue of its 100% ownership of the company. It follows that for all practical and accounting purposes the £400m loans are unsecured.”

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Heathrow has lost £1 billion since start of March, is cutting staff pay, and could cut 1,200 jobs

Heathrow says that it has lost £1 billion since the start of March, due to the Covid pandemic. There could be 1,200 Heathrow jobs lost.  The airport served a formal notice to staff yesterday, triggering a 45-day consultation period over compulsory job losses. The airport and unions have failed to agree to a deal over the future of its frontline workforce after months of talks. Heathrow is proposing salary cuts of between 15-20% for some affected staff, with a phased reduction in salaries over 2 years. A voluntary redundancy scheme has been offered. The airport claims there might be few compulsorily redundancies, but only if the unions agree a deal. About 4,700 frontline staff are affected, including engineers, security and airside operations. Heathrow has already lost 450 out of 1,000 head-office managerial staff.  The airport had indicated previously that as many as a quarter of staff could be made redundant, so up to 1,200 jobs may go. Heathrow said its proposals "guarantee a job" for anyone who wants to remain with the business. The Unite union is not happy with the airport's offers.  Gatwick is losing about 600 jobs, a quarter of its workforce. 

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Protest by opponents of Southampton airport, against the “madness” of its expansion plans

Opponents of expansion of Southampton airport took part in a protest on Saturday 29th, as did many other groups at airports across the UK.  The group say the airport should not be expanding, at a time of climate crisis, and the impact would be a needless increase in carbon emissions, from the extra flights using the airport.  They said  1. The economic case does not stack up, in jobs, house prices or health impacts.  2. The noise impacts of expansion, with many more local people negatively affected.  3. More air pollution will affect local health and mortality rates, from an increase (the airport's own figures) of 272%  in NOx emissions. 4. No figures have been provided for ultrafine particles, which could be even worse than NOx for human health.  5.  The expansion will contribute to climate change and a ‘carbon-neutral’ airport is a myth; the expansion would roughly double current carbon emissions, and the airport is only looking to offset the relatively small ground emissions, not those from flights.

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Bristol Airport Action Network crowdfunding to challenge airport’s appeal against North Somerset Council rejection

BAAN (Bristol Airport Action Network) Committee Coordinators are crowdfunding, to raise £6,000 for their attempt to challenge the airport's appeal against the refusal, by North Somerset Council, of its expansion plans.  BAAN says: the airport's plans "would mean an extra 23,600 flights and two million passengers a year (as well as an extra 10,000 car movements a day). They would also mean a further million tonnes of carbon to be emitted a year at this time of climate and ecological emergency. Our position is that this airport expansion (and others that are planned) is not legally compliant with the Climate Change Act, The Paris Agreement and the Government's commitment to be carbon neutral by 2050 and MUST BE STOPPED." They are doing all they can to stop the expansion. BAAN say: "We have been given a very favourable fee quote from a specialist planning barrister and are talking to a number of top experts who are likely to give their time pro-bono or at much reduced rates to represent us at the appeal. We are also being helped by Greenpeace and other environmental organisations." Donations would be greatly appreciated.

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