Airport News
Below are news items relating to specific airports
NEF analysis suggests huge future costs to taxpayer of Southampton airport and its flights
New analysis by the New Economics Foundation (NEF) has calculated the cost to society of the carbon emissions generated by UK aviation, and UK airports. These are the costs of the impacts of an altered climate, on infrastructure, extremes of weather, water and energy etc. NEF has used the new carbon values, set out by the government in September 2021. Instead of costing the societal damage done by 1 tonne of carbon at a bit of £70, the price has been put at between a low of £124 to £240 as a medium price, for 2022. Those numbers rise steeply up to 2050 (prices after that have not been considered). That means most airport expansion schemes, including Southampton's, are likely not to be viable, and the economics need to be re-calculated. For Southampton, NEF says that just looking at the 2021 prices, the carbon cost to society would not be £421 million (2025 - 2050) by more like £921. And of the £921 only £212 million would be paid in traded emissions. That leaves £742 which would be the cost to the taxpayer - as the cost of an expanded Southampton airport, with more flights and more passengers.
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Bristol local campaigners feel betrayed by Bristol Airport approval by the Planning Inspectorate
Despite huge opposition to the plans to expand Bristol airport, from a cap of 10 million annual passengers to 12 million, the plan was approved by the Planning Inspectorate on 2nd February, after an appeal by the airport to refusal by North Somerset Council. Residents and campaigners say that this decision flies in the face of the evidence that was presented to the inquiry by climate experts and local residents. It means about 20,000 more annual flights. It also makes a mockery of the planning decision taken locally by North Somerset Council and the expressed opinions of the local MPs and surrounding councils. The voices of some 8,900 people who objected in writing to the proposals and the many thousands more who marched in solidarity against the plans has also been ignored in what is a terrible blow to local democracy and accountability. The expansion would result in hugely more CO2 (at a time of climate crisis), more noise, more car journeys and road congestion. Stephen Clarke from Bristol Airport Action Network (BAAN) said: " It means that the airport and the planning inspectorate have totally ignored the climate crisis we are currently in."
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Bristol Airport expansion allowed by Planning Inspectorate, on appeal – called “devastating” by opponents
The 36-day public inquiry into Bristol Airport’s proposal to expand from 10 to 12 mppa, and add thousands more car parking spaces, took place in September and October 2021. Now the Planning Inspectorate have announced their decision to allow the appeal by the airport against refusal by North Somerset Council. This has been condemned as devastating by opponents and extremely disappointing by local councillors. North Somerset Council leader Don Davies said the decision “flies in the face of local democracy”. His authority had given sound planning grounds for refusing permission in February 2020, and warned that the detrimental effect of the airport expansion of the airport locally - as well as the wider climate impacts - outweighed the narrower benefits, which would be almost entirely the commercial interests of the owners, the Ontario Teachers' Pension Plan.. The plan to expand the airport was opposed by thousands of residents, as well as Bristol City Council, Bath and North East Somerset Council and the West of England Combined Authority. Don Davies said the council is seeing if there are any grounds for challenging the PI ruling.
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NEF analysis indicates the CO2 from Gatwick expansion could cost taxpayers £8.5 billion up to 2050.
New analysis from the New Economics Foundation has calculated the costs to society of the carbon emissions that airport expansion plans would cause. The "carbon value" used to be a bit over £70 per tonne, but in September 2021 this was increased to £124 per tonne, and it will keep rising. So the figures airports have put forward, for the positive economic impact of their expansion are now entirely out of date. Almost the only carbon costs the aviation industry pays is for carbon through the UK ETS, which only covers flights within the EU. Not flights anywhere else in the world. The Gatwick cost of emissions from departing flights is calculated by NEF to be £9.196 billion, rather than £4.502 billion at the lower, out of date, price - for the period between 2025 – 2050. They put the forecast price paid for traded emissions at £634m. So the proportion of climate cost paid would only be 6.9% which implied cost to wider society and taxpayer at £8.562 billion. That is the cost to society of the climate impact of the higher carbon emissions caused by more Gatwick flights.
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Heathrow’s financial problems deepen, especially if it has 15% less passengers in 2022 than forecast
Heathrow has been allowed, by its regulator the CAA, to increase its passenger charge from £19.36 to £30.19 this year until the summer. After that the CAA will probably rule on charges for the next 5 years. Heathrow wanted a larger increase, to £43 per passenger, and based some of its profit forecasts on that - and is peeved with the CAA for limiting its charges. Heathrow has net debts of £15.4 billion. It says that if its number of passengers in 2022 is more than 15% below its forecast of 45.5 million, it will have financial problems - though “no covenant breaches are forecast in 2022” but that is possible. Its forecast aeronautical revenue for 2022 has been revised down to £2.19 billion, and its underlying earnings down to £1.04 billion. If Heathrow has to breach its covenant terms with its lenders, it becomes a less attractive (aka lucrative) investment, and its credit rating eg. by Standard & Poor’s and Fitch. The airlines using Heathrow are, predictably, deeply opposed to yet higher Heathrow charges.
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Realistic cost of carbon emissions likely to make airport expansion plans unviable
The government's new higher, more realistic, carbon values - putting a cost on carbon emissions from aviation - are likely to make many airport expansion schemes non-viable. The carbon value was increased, in an attempt to move towards "net zero" by 2050. The anticipated economic benefits will be drastically cut, if carbon emissions (and their negative impact on society and the planet) are costed properly. The planning law is currently inadequate and ambiguous, but campaigners hope planning authorities will take greater account of the impact of emissions on the economic case of proposed projects. The New Economics Foundation has found that the economic cases for 6 of the 7 major airport expansion proposals — including London’s Heathrow and Gatwick — use either the old carbon value, or none at all. As yet, planning law in England does not explicitly require carbon values to be used. But the relevant planning authority can demand they are included in applications. If the anticipated outcome of Bristol’s appeal gave a “clear line” on carbon values, it is very likely to inform other airport expansion decisions.
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Public to foot £62bn bill for climate damage from airport expansions – which the aviation sector should pay for
Analysis by Alex Chapman, working for the New Economics Foundation (NEF) has found that in allowing airports around the country to expand, the government is letting the aviation industry off the hook for £62bn of damage to the climate. The amount of carbon that airports, and mainly aircraft, emit has a negative impact on the global climate - and thus to society. Governments can put a figure on this cost, for each tonne of emitted carbon. In September 2021 the government increased the carbon value figure from around £70 per tonne to £245 per tonne (central value) for 2021 rising to £378 per tonne by 2050. The new NEF analysis found the aviation industry will only pay for 16% of the emissions clean-up costs (through the UK ETS) of the 8 airport expansions currently moving through UK planning processes (Heathrow, Gatwick, Stansted, Luton, Bristol, Southampton, Leeds Bradford and Manston). The higher, more realistic, price for carbon makes these expansion schemes uneconomic, if the carbon is properly paid for. The government does not have a comprehensive mechanism for recouping these costs from the aviation industry.
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Liverpool Airport expansion plans to be reviewed, as contrary to council climate aims – Oglet shore reprieved
Liverpool Airport had been hoping to expand by extending its runway by 314 metres, to attract direct transatlantic flights, to try to more than double its passenger numbers. This has been fiercely opposed, especially as it would take land to the south of the airport, where there is the Oglet shore - a natural section of coast, valued by walkers and important for wildlife, including some Red List species. Now Liverpool City councillors have agreed to review policies relating to any future extensions. Councillors from all parties expressed concerns over the proposals to extend the runway. At a full council meeting, they also agreed to consider - after investigating the evidence - selling the council's 10% stake in the airport, as it is incompatible its efforts to fight climate change. The airport put forward the plans before the council declared a climate emergency, in 2018. Campaigners fighting to save the Oglet shore are delighted, as the airport masterplan ear marked it to be covered in concrete for new hangers, maintenance services, cargo facilities and warehouses.
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Stansted had lowest number of passengers for 23 years in 2021
Stansted Airport handled just 7.1 million passengers in 2021, which is just 25% of the number in 2019. The 2021 number is the lowest since 1998, reflecting the dramatic reduction in air travel caused by Covid. In 2020 it handled 7.54 million passengers (73% lower than the 28.12 million in 2019). Stansted Airport Watch says both outbound and inbound tourism declined, due to Covid. But this decline in outward-bound tourism has had the effect of increasing the amount spent in the UK - not taken abroad on leisure trips. There was a favourable impact on the balance of payments of £26 billion in 2020, and a similar figure is expected in 2021. As well as online purchases, people swapped home improvements and furnishings, as well as staycations, for trips abroad. This helps explain why UK GDP is now even higher than before the pandemic, and employment levels are also at a record high. It is also reported that VAT receipts are well ahead of expectations. This may be because there is no VAT on air travel but spending on home improvements, furnishings and staycations are all subject to VAT. While leisure demand will largely return, it is likely business air travel will never recover to 2019 levels.
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Motion to Liverpool City Council says its funding of the airport is not consistent with its climate aims
In a motion to the Labour-led Liverpool City Council, Green member Anna Key said supporting Liverpool John Lennon Airport (LJLA) was not in line with the authority's climate emergency declaration in 2019. For the Liverpool council to keep funding the city's airport is "incompatible" with its effort to fight climate change, and become "carbon neutral" by 2030. The motion will go before a full council meeting on 26 January. Liverpool City Council has a 10% stake in the airport. Anna also called for opposition to LJLA's "potential future expansion" plans. The plans for expansion would mean an increased number of flights, as well as destruction of valuable green space adjacent to the airport. There would also be more passenger and freight road traffic, causing air pollution and carbon emissions. Anna Kay said the council should stop supporting the airport financially. Her motion also calls on the council to get planners to undertake an urgent evidence-based review of all policies relating to green space, environment and green belt. There is a 38 Degrees petition to two councils, to protect the Oglet shore area from airport development.