Airport News
Below are news items relating to specific airports
Heathrow accused of not ensuring all cleaners are paid living wage – while paying huge dividends
Cleaners at Heathrow say that low pay is damaging their families' lives. They have have complained to the airport's CEO John Holland-Kaye that they are not getting the London living wage, which was agreed as a condition by the Airports Commission, as part of plans for a 3rd runway. Heathrow had agreed to pay £9.40 per hour, (about £19,500 per year). But the airport workers say this is paid only to directly employed staff and not those working through agencies. They say low wages and long hours deny them "dignity" and the chance to spend time with their children. (John Holland-Kaye himself earned £2.06m in 2015, more than doubling his basic salary of £885,000. He stands to get a huge bonus if he can get consent for a 3rd runway). While directly employed staff are paid £9.40 per hour, those who are employed through contractors might only get £7.20. In October 2015 the FT reported that by the end of 2018, Heathrow aims to have about a third of its employees on salary packages that are about 30% lower than existing terms and conditions. It will also introduce an annual cap of 2% on future increases to pensionable pay for active members, resulting in a one-off reduction of £236m in the scheme’s liabilities. In January 2016 the Sunday Times reported that Heathrow had paid its owners dividends of £2.1 billion since 2012 – but just £24 million in Corporation Tax.
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Richmond, Merton, Kingston & Croydon councils write to PM to stop Heathrow runway, and choose Gatwick
In addition to the four councils that will legally challenge the government if it decides on a Heathrow runway (Windsor & Maidenhead, Richmond, Hillingdon and Wandsworth) now four councils have written to the Prime Minister to oppose a Heathrow runway decision. Richmond, Merton, Kingston and Croydon councils, calling themselves the South London Partnership, made the case to Theresa May to approve a Gatwick runway instead. All these councils know the highly adverse impact of the noise of Heathrow flights on their residents, and would prefer that noise burden to be pushed to others (who do not have the opportunity to vote them out - as with the Mayor, Sadiq Khan, who also backs a Gatwick runway. They also say: “One thing in particular on which we want to contribute is ensuring the transport links to Gatwick and connectivity more widely, including into our area, central London and with other key corridors, are developed to support the full potential of airport expansion." Presumably they appreciate that the transport links to Gatwick are very poor, and would not be able to cope with a doubling in the number of air passengers. Conservative Richmond Council leader Lord True said the government should "stand up for ordinary families, rather than ‘big business’".
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UK and China renew bilateral deal so each could have 100 return flights (up from 40) per week
The DfT has renewed the bilateral aviation agreement with China, to allow more weekly flights between the two countries. Until now, the limit had been 40 flights by UK airlines to China per week, and 40 flights by Chinese airlines to the UK. This has been raised to 100 flights each. There will be no limit on the number of all-cargo services (but most Heathrow freight goes as belly hold, not separate freighter). Currently Chinese airlines operate 38 flights a week between the two countries, and UK airlines operate 29. The only UK airports that have flights to China are Heathrow and Manchester. The earlier deal was that any UK airline could serve a maximum of 6 separate airports in China. Now UK airlines can operate to anywhere in mainland China. Laying on the hype, Chris Grayling, the Transport Secretary, said the deal was a “big moment for the UK”. However, airlines will have to decide whether it makes sense to use the extra capacity to offer new Chinese flights to and from China, with doubtful demand, when transatlantic routes are more profitable. The hope is probably for more UK business and UK exports. The DfT ignores the problem that the UK imports from China more than twice as much as it exports to China. More flights may exacerbate that. House of Commons Library data says that: "In 2014, UK exports to China were worth £18.7 billion. Imports from China were £38.3 billion. The UK had a trade deficit of £19.6 billion with China." Flights to and from Hong Kong are in a separate bilateral deal.
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New Civil Engineer believes Heathrow, Gatwick and Birmingham set to get go ahead for runways
The NCE believes government will give the go ahead to new runways at both Heathrow and Gatwick - on 18th October. The NCE expects Heathrow would be allowed a runway immediately, and Gatwick could build a 2nd runway within the next 5 years. NCE also understands the government will urge Birmingham airport to plan a 2nd runway. The reason for this decision, other than the difficulties in making it, is ascribed to the forecasts of air passenger numbers being inaccurate. (Forecasts are, of course, usually inaccurate ... and air passenger numbers depend on many variables, including oil price, and the strength of the £ and UK and global economy). The DfT produced very bullish passenger forecasts in 2007, which were way too high and knocked back by the recession. Lower forecasts were produced in 2011, and then lower again in 2013. The Airports Commission did its own forecasts, over a range of scenarios - and took account of the fact that aviation expansion would be constrained by the annual cap on CO2 emissions of 37.5 MtCO2. Because air passenger numbers have recovered to their pre-recession levels, it is believed by some that this rapid growth will continue and the forecasts are too low. The "predict and provide" scenario would require more runways. This sort of growth in UK aviation challenges our legally binding UK carbon targets under the Climate Change Act 2008.
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Windsor & Maidenhead council (PM’s constituency) to raise amount for JR against Heathrow runway to £50,000
Windsor and Maidenhead council (Theresa May's constituency) will increase its budget to fight a Heathrow runway, if it gets government backing. The council is prepared to spend £50,000 on a judicial review, which underlines the scale of resistance that the prime minister will face from residents in her Maidenhead constituency if she agrees to allow the third runway to go ahead. Council papers say the runway plans would have a “significant potential impact on the quality of life” of people living in the area. Lawyers for the 4 councils most opposed to the runway wrote to the government’s airport capacity directorate on 30 September 2016 calling for a consultation “in advance of any decision”, and that consulting councils afterwards would represent a “sham”. The councils say the process by which ministers have taken the decision has been “shrouded in mystery” and the “lack of openness and transparency is of great concern”. Specifically government work on air quality was promised but has not been released, and EU limits on nitrogen dioxide concentrations remain binding. The council is particularly concerned about residents who are currently not under flight paths, but would be under the new plans. The council says, moreover the mitigating factors being promised by Heathrow, such as a ban on night flights, are “expressed in vague terms which cannot meaningfully be assessed or considered”.
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Teddington Action Group prepares for “first of many” judicial reviews of Government decision on Heathrow runway
Teddington Action Group (TAG) has re-stated its commitment to launch Judicial Review (JR) proceedings of a Government decision on airport expansion – should one of the two Heathrow options be chosen. TAG issued a pre-action letter of claim (the first step in the JR process) back in June 2015, on the eve of the Airports Commission's recommendation for a new runway at Heathrow. Proceedings were then put on hold pending a Government decision on the 3 runway options. TAG has now re-confirmed its commitment to continue proceedings, with a key ground for its JR being the "apparent bias" of the Chair of the Airports Commission itself, Sir Howard Davies, due to his roles at GIC Private Ltd, owner of a 11.9% share in Heathrow Airport Holdings. In 2009, Sir Howard was appointed as an adviser to the Investment Strategy Committee of GIC Private Limited (formerly known as the Singapore Government Investment Co), advising them on "new growth opportunities". In 2011 he was appointed to the International Advisory Board of GIC Private Ltd, a board on which he was still sitting on the day of his appointment as "independent" Chair of the Airports Commission. He never disclosed these roles in the Airports Commission's Register of Interests. He then accepted the Chairmanship of RBS, Heathrow's main banker, while still steering the Commission to its conclusion. This puts the Commission's "independence" into question.
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Heathrow manages to persuade SNP to back its runway, with hopes of 16,000 jobs (?)
Heathrow have received a boost after the Scottish government announced its backing for its runway plan, which it claimed would create up to 16,000 jobs across Scotland. Environmental campaigners and Green politicians decried the move as “a disaster for climate change”, and questioned whether the promised jobs would ever in fact materialise. The Cabinet Secretary for Economy, Jobs and Fair Work, Keith Brown, believes there would be more benefits for Scotland from a Heathrow runway than a Gatwick one. A series of commitments, including on jobs, investigating the use of Glasgow Prestwick airport as a potential site for a logistics hub for building the 3rd runway, and a reduction of £10 per passenger on landing charges paid by airlines operating services from Heathrow to Scotland, are apparently included in a Memorandum of Understanding signed between Heathrow airport and the SNP government on Monday 10th. Opponents are surprised by this move, as GIP owns both Gatwick and Edinburgh airports, and the SNP are behind the growth of Edinburgh airport. What Scotland wants is more of direct international air routes, not necessarily routes via Heathrow, for business and for cargo (imports and exports). More flights will mean more money taken out of Scotland on leisure trips - something airport expansion advocates always ignore. The current Scottish tourism deficit is already around £1.5 billion per year.
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The truth about economic benefits of Heathrow expansion – new detailed analysis from FoE
A new briefing on the economics of a 3rd Heathrow runway makes interesting reading. MPs, councils, Chambers of Commerce and others have been subject to a barrage of propaganda from Heathrow, urging them to support a new runway, for massive economic benefits. But the actual evidence - instead of hype, sound bites and corporate propaganda - shows there is virtually no economic benefit for the country. Furthermore, the regions lose out to the south east. The most important single table from the Airports Commission's final report shows a total benefit, to all of the UK over 60 years, of just £1.4 billion - in the carbon capped scenario (£11.4 billion in the carbon traded scenario). Compare this to the figure of £211 billion that Heathrow is using is its PR. The Commission also showed that without a third runway at Heathrow, growth in necessary air traffic goes to other airports where there is lots of spare capacity. With a Heathrow runway, the flights at regional airports will end up being substantially reduced. It is very hard to see how losing traffic and destinations from regional airports to Heathrow is good for the economy of the regions. In addition, Heathrow is only prepared to contribute £1.1 billion to surface access infrastructure, leaving the taxpayer to fund as much as £17 billion.
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Theresa May at odds with her Maidenhead council and local Tory party chairman over Heathrow
The Chairman of Theresa May’s local Maidenhead Conservative Association is part of a group threatening to sue her government if it approves the 3rd runway at Heathrow. Cllr Geoffrey Hill sits on a council warning it will launch legal action within days if Heathrow expansion is backed. Senior Windsor & Maidenhead council figures believe increasing capacity at Heathrow would blight their residents with even more noise and pollution -and are determined to stop the project. Theresa May is widely expected to back Heathrow over Gatwick when she makes a decision on airport expansion - perhaps on Tuesday 18th October (or 11th?). The Prime Minister’s constituency of Maidenhead, which she has represented since 1997, is badly overflown by Heathrow planes. Mrs May voiced her concerns about a 3rd runway before the 2010 election but has since made little public comment on the development. (See her comments from 2010 and 2009 below). Windsor and Maidenhead council is one of 4 local authorities threatening to challenge any decision to build a Heathrow runway through the courts. Simon Dudley, the Tory leader of the council, said their judicial review could see the case in the courts for years, delaying or preventing the runway's construction. The council has put aside £30,000 to fight the legal battle. Maidenhead councillors campaigned on opposing an extension of Heathrow locally before the 2015 election.
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Gatwick says it intends to build a 2nd runway, even if Government decides on Heathrow
Simon Calder writing in the Independent says Gatwick intends to build a 2nd runway – even if the Government decides Heathrow should have a runway instead. Gatwick wants to build anyway, even though the Airports Commission regard 2 runways as unnecessary, with inadequate demand to fill both. They believed (ignoring carbon implications entirely) there might be demand for a 2nd new runway by around 2050. A moratorium on starting any physical work on a 2nd runway at Gatwick expires in 2019. Gatwick (whose management are in line for vast bonuses if they can get a runway approved) hope they could have a runway completed by 2025 – faster than a 3rd Heathrow runway. Aviation experts have questioned the wisdom of building 2 runways simultaneously at both airports. Aviation analyst John Strickland said: “The acid test would be how much additional traffic Gatwick would attract if Heathrow secures a 3rd runway, which will attract the lion’s share of airline demand in the London market.” Another said the owners of Heathrow are in it for the long term, but Gatwick owners, GIP, are just in it for the money. UK airlines are understood to be appalled at the prospect of higher airport charges to fund the building of one new runway, let alone two. Local campaign groups are also appalled, and point out that Gatwick has no plans to pay for any of the essential surface access improvement work needed to deal with a 2nd runway.