Airport News
Below are news items relating to specific airports
GIP to put London City airport up for sale this year – might raise £2 billion?
London City airport is to be put up for sale by GIP by the end of the year, who want to capitalise on the rising global demand for air travel. GIP owns 75%, with Oaktree Capital owning the remainder, but both have agreed to the sale. GIP also has the main stake in Gatwick airport, and Edinburgh but say they are not selling these now. It is thought the airport might fetch as much as £2bn, which the FT says would be a multiple of over 60 times the company's EBITDA in 2014. GIP bought the airport for about £750m in 2006 from Dermot Desmond; he had paid £23.5m for it in 1995 from Mowlem. The airport is trying to get planning consent for work to increase the annual number of passengers to 6 million per year by 2023, (4.1 million in 2014) but this has been blocked by Boris, due to noise. London City is appealing against this and may hear the outcome next year. City airport has already been granted permission to increase ATMs from 70,000 to 120,000 per year. It is widely believed that GIP would sell Gatwick soon, after the government makes a decision on if/where there might be a new runway. Last month, GIP said it would be prepared to give a legally binding promise that it will not sell out for a quick profit if the government decides to opt for a runway at Gatwick.
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Permission refused for Gatwick Obviously NOT’s Judicial Review. They appeal.
Gatwick Obviously NOT, the flight path group set up last year in response to the newly concentrated arrival flight paths to Gatwick, has been refused permission to proceed with their JR against the CAA. Though disappointed, the GON's Strategic Team of 15 spent much of the weekend conferring on the best way forward. They had to review and understand the reasons for the Order to Refuse and take the advice of their QC, John Steel. Having done so, the very strong consensus was to go to Appeal, and Counsel has been instructed. It is expected that this will we have now given those instructions to our Counsel. We expect that this will happen in the autumn. It is, however, a daunting task to take on the CAA, the Secretary of State for Transport, Gatwick airport and NATS. The decision to go for Appeal was taken with great care - and fundraising is under way to raise the necessary funds. GON say the judge, Mr Justice Haddon-Cave, while refusing the Permission, added a postscript, seeming to suggest that there may be an issue about the need for consultation for 'seismic' events (such as the flight path changes introduced without notice) that is more a matter for the law-makers, not the lawyers. GON are staging a huge outdoor photo stunt on 16th August. Details below.
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Independence of Airports Commission questioned over Howard Davies’ role in Prudential, which recently bought more Heathrow property
Campaigners against a 3rd Heathrow runway have questioned the independence of the Airports Commission and its chairman, Howard Davies. It has been revealed that he is a board member of Prudential, an insurance group which invested in property near Heathrow, just months before the Commission recommended a 3rd runway. He chairs its risk committee, which reviews and approves group investment policies as well as advising the board on risks in the company’s “strategic transactions and business plans”. The Guardian reports that Prudential embarked on a £300m spending spree on properties around Heathrow, just as the commission prepared to deliver its final report, on 1st July. Prudential has an asset management business, M&G. In 2013 it bought the Hilton hotel at Terminal 5 for £21m and an earlier investment with planning permission for a large hotel close to where the proposed 3rd runway would be built. In May and June 2015 M&G bought more property including cargo depots and a business park a short distance from Terminal 4. Howard Davies also, till September 2012, advised the GIC (Singapore), which owns 11.2% of Heathrow. The Teddington Action Group say Davies' links with Prudential undermines the impartiality and credibility of the Commission’s recommendations.
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Jeremy Corbyn’s election as Labour leader could scupper plans for Heathrow 3rd runway
The election of Jeremy Corbyn as leader of the Labour Party could scupper plans for a 3rd Heathrow runway, as he has now declared his opposition to it. The three other Labour contenders, Andy Burnham, Yvette Cooper and Liz Kendall, all support the plan to expand Heathrow. Jeremy Corbyn appears most likely to win the leadership contest. If the Conservative party needs to get a Heathrow runway approved in Parliament, he may need Labour to be behind it. When the Airports Commission issued their final report on 1st July, Labour supported a Heathrow runway and wanted a quick decision by the Government to get on with it. But now Mr Corbyn said: “A third runway at Heathrow would mean 4,000 homes demolished and 10,000 people displaced. It would cause massive increases in noise and air pollution and inflict misery on hundreds of thousands of Londoners. UK air pollution is already above EU limits, and 30,000 people are dying every year because of it". He wants better transport links to airports, betteru se of existing capacity, and more even spread to the regions. Of the London Mayoral candidates, Tessa Jowell, Gareth Thomas and David Lammy back Heathrow, and Sadiq Khan, Christian Wolmar and Diane Abbott are against.
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Hounslow Council “positive and productive” and “better working relationship” with Heathrow
Labour led Hounslow council responded to the Airports Commission's final report recommending a 3rd Heathrow runway, by saying that while the council is opposed to a bigger Heathrow, they want "a better and successful Heathrow." They continue say they are against a 3rd runway, or any relaxation on runway alternation, or more than 480,000 flights per year. However, the extent of the council's opposition is much reduced. It says it wants the "very best noise protection and pollution control measures for our residents – and in particular, our schools." But it adds: ..."we welcome the report’s recommendation that the new runway should come with severe restrictions to reduce the environmental and noise effects, including a noise levy, and that night flights would be banned. ... we .... have recently developed a positive and productive relationship with Heathrow, which has resulted in many improvements for local people..." In June the council denied rumours it has withdrawn from the 2M group, which opposes a Heathrow third runway. Hounslow is noticeably on better terms with Heathrow, hoping to get benefits if a runway is permitted. Hounslow teamed up with Hillingdon Council to oppose a planning application which would enable more departures over Cranford.
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Willie Walsh says Heathrow 3rd runway is a “vanity project” with outrageous costs
British Airways boss Willie Walsh has said that the costs of Heathrow's plans for a 3rd runway would be “outrageous”. He said: “At the moment this is a vanity project by the management of Heathrow who are driven to build a monument to themselves.” Walsh said that even if Heathrow gained another runway it would be lagging behind Dubai as a global hub by the time it is built. “It is based on inefficient infrastructure which is not fit for purpose. Airlines and consumers are looking for lower costs when it comes to flying but airports only seem to be looking at higher costs.” Heathrow was already one of the most expensive airports in the world and was now “talking about raising costs by 50% to build the extra runway”. His criticism may be the start of negotiations to ensure BA is not landed with a huge bill to fund Heathrow expansion. John Stewart, chairman of HACAN, said: “Willie Walsh is saying that a 3rd runway won’t deliver benefits for the aviation industry that are worth paying for. This could turn out to be curtains for the third runway unless this is no more than clever negotiating tactics by one of the sharpest operators in the business.”
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Airports Commission report shows fewer, not more, links to regional airports by 2030 with 3rd runway
The Times reports that analysis by Transport for London (TfL) of the Airports Commission’s final report shows that, with a 3rd runway, Heathrow would only serve 4 domestic destinations by 2030, compared to the 7 is now serves. It would serve only 3 with no new runway by 2030. (The Gatwick figures are 7 domestic destinations by 2030 with a 2nd runway, compared to 10 now). Heathrow has been claiming that its runway will be important for better links to the regions, and improved domestic connectivity by air. The Heathrow runway has been backed by Peter Robinson, the first minister of Northern Ireland, Derek Mackay, the Scottish transport minister, and Louise Ellman, the chairwoman of the transport select committee - on the grounds that it would help the regions. The Commission's report says: (Page 313) "15.8 ....without specific measures to support domestic connectivity even an expanded Heathrow may accommodate fewer domestic routes in future...." The Commission cannot see effective ways to ensure domestic links are not cut in future, as less profitable than long haul, but they suggest public subsidy by the taxpayer for these routes. This is by using PSO (Public Service Obligations) which could cost £ millions, is a bad use of public money, and may fall foul of EU law.
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British Airways-owner CEO, Willie Walsh, opposes new Heathrow runway as too expensive to airlines
British Airways-owner IAG does not support the building of a 3rd Heathrow runway, its chief executive said, because the costs of the project does not make sense for the airline. Willie Walsh said: "We think the costs associated with the third runway are outrageous and certainly from an IAG point of view we will not be supporting it and we will not be paying for it. ...We're not going to support something that increases our costs." British Airways is the biggest airline at Heathrow [it has around 50% of the slots]. An expanded Heathrow with a new runway would be partly paid for by higher charges to airlines. In May this year he had said "the cost of all three [runway] options are excessive and would translate into an unacceptable increase in charges at the airports.” Not to mention the problems of politics and unacceptability to the public. The Airports Commission's final report says, with a new runway at Heathrow, "The resulting impact on passenger aeronautical charges across the Commission’s four demand scenarios for Heathrow is an increase from c. £20 per passenger to a weighted average charge of c. £28-30 per passenger and a potential peak of up to c. £31."
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Ipsos Mori poll across UK shows 33% don’t want airport capacity increased (60% do). Only 13.2% want Heathrow runway.
The Evening Standard commissioned a poll by Ipsos Mori, of attitudes to a new runway - or a new airport. It was a telephone poll, of 1,026 adults across the UK, between 18th and 20th July. It found that 60% thought there should be some airport capacity expansion. 33% though there should be no expansion (and 7% did not know). Of the 60% in favour, 44% (ie. 26% of the total) either wanted a new airport or expansion of an airport other than Heathrow or Gatwick. Only 22% of those wanting expansion wanted a Heathrow runway (ie. 13.2% of the total sample) and only 24% (ie. 14.4% of the total sample) wanted a Gatwick runway. Those figures really are very small. Asking the whole sample, including those who did not think airport expansion was needed, what were the most important issues the Government should consider on where a runway should be built, the very highest number said "impact on the natural environment" (39%) and the second highest was "noise created for local residents" (30%). Other issues like total costs, support of local residents, local air quality and traffic congestion were all important (about 11 - 15%). The message being taken from the poll is not only that backing for a runway at Heathrow or Gatwick is very small, and there is no consensus, but also that there is more backing for a new airport elsewhere - or expanding another airport (regional?)
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David Cameron urged to reopen consultation on air quality at Heathrow
More than 30 west London politicians and anti-airport expansion group leaders have signed a letter to the PM over air pollution following Airports Commission recommendation to allow a 3rd Heathrow runway. Serious concerns exist about the level of air pollution around Heathrow, where it is already above the legal limit. The group of organisations signing the letter to David Cameron include the leaders of two councils, and 5 MPs, 3 Assembly members and environmental groups, say this problem has not been taken seriously by the Commission. There either needs to be a new consultation, or the government should rule out a Heathrow runway. The Commission's conclusions are based on a highly flawed and very short consultation. The letter states: "Given the Commission timetable and the fact their main 350-page report was published just a month after the air quality consultation ended, it is clear that the Commission effectively regarded it as a tick box exercise and one that was immaterial to the overall report. It is hard to see how a third runway with millions more car and lorry journeys to the airport will improve air quality around west London. It will obviously make it worse. In doing so it will also raise the legal bar for expansion ever getting the green light."