Airport News
Below are news items relating to specific airports
Heathrow expansion will mean less direct international flights for Yorkshire, analysis shows
The Government faces considerable uncertainties in trying to push through the plans for a 3rd Heathrow runway, and get enough MPs to vote for it. Labour may oppose the plans, and analysis showed northern airports will lose out on thousands of international flights if Heathrow got a 3rd runway. The government hopes they can mislead the SNP with pledges of huge benefits from the runway, based on out-of-date figures for possible economic benefit from the runway, and crazily calculated (back of envelope, starting with the wrong number) calculations about possible future jobs. It is likely that Leeds Bradford Airport would see 4,449 fewer international flights a year by 2030 if the 3rd runway went ahead. Doncaster Sheffield Airport would lose 1,413 while the North’s major hub - Manchester - would lose 20,258. Keighley MP John Grogan, who requested the figures from the Commons Transport Committee, said Heathrow expansion would mean Britain’s regions losing out. The Labour MP also questioned the Government’s pledge to ring-fence 15% per cent of slots on the new runway for domestic connections to the rest of the UK. This can only happen if they are subsidised, and these flights almost always run at a loss.
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Surprise ! Former Airports Commission chair and Sir John Armitt urge MPs to back Heathrow 3rd runway in vote
The former Chairman of the Airports Commission, Sir Howard Davies, and a Commissioner on the Airports Commission, Sir John Armitt, have written to MPs urging them to vote in favour of a 3rd runway at Heathrow after the Cabinet approved the government's plans earlier this week. Neither of them has been working on aviation issues recently and, frankly, their letter illustrates that they probably have not kept up with the details. But MPs will probably be persuaded, by this further lobbying on behalf of the government and Heathrow. They gloss over, as of course, does the DfT, the difficult issues of noise, air pollution, impact on the regions, cost to the taxpayer, carbon emissions etc. Their only focus is that the runway might prevent the UK being "inward-facing" after Brexit, and that it "meets the test of the national interest" (glossing over local impacts). To show just how ill-informed their letter is, that "In respect of aviation noise, our analysis indicated that the number of people affected by an expanded airport would be fewer than at Heathrow today." A letter with a good chance of being put straight into hundreds of MPs' waste (recycling) bins?
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SNP “promised” 16,000 new jobs if it backs 3rd runway – but that figure is crazily inflated – as Heathrow & DfT well know
The Conservative government may need the SNP’s support if some of its MPs rebel against the new Heathrow runway - which is likely. The SNP will demand guaranteed extra slots for Scottish flights into London in return for the party’s support for the 3rd runway. Ian Blackford, the head of the SNP’s parliamentary group in London, said the party had not taken a decision on runway yet - and would only do so if Scotland stood to benefit. Their backing may not be guaranteed, though that had been assumed - particularly after Keith Brown, Scotland’s infrastructure secretary, believed there might be 16,000 Scottish jobs, created by the project. That figure of 16,000 jobs is what Heathrow has, for several years, been peddling. Along with similarly inflated claims for all the regions. The number was derived by a consultancy called Quod, in a flimsy little 4 page paper, with no methodology, no date, no author etc. It is based on the assumption that Heathrow would provide an economic benefit (NPV) to the UK, over 60 years, of £147 billion. That number is now known to actually be about £3.3 billion, at best (if not a negative number). The SNP would be very ill-advised to believe Scotland will benefit; in reality its airports would be damaged by allowing the runway. Tragic if they vote in favour of it, because they have not checked out the facts properly.
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Labour knows the Heathrow 3rd runway plans fail their 4 tests – so may vote against the NPS
Theresa May’s plans for Heathrow expansion are facing an unpredictable Commons vote after Labour indicated that the runway plans do not pass its four key tests. These require (1). noise issues to be addressed, (2). air quality to be protected, (3). the UK’s climate change obligations met and (4). growth across the country supported. Labour may refuse to vote for the plans when they come before MPs for a vote on the National Policy Statement (NPS) - ie. the runway - in the next 3-4 weeks. With Boris Johnson expected to be (so convenient ...) "out of the country" and several Tory MPs voting against it, the government needs Labour and the SNP to vote in favour. However, Jeremy Corbyn’s office said the issues of air pollution, noise for residents, regional connections and greater capacity were crucial. The revised NPS, published on 5th June, is barely changed from the draft and does not include measures that convincingly pass the 4 tests. This suggests that Labour could either whip a vote against the 3rd runway plans or at least order its MPs not to back the Government. The SNP has not so far indicated if it will vote in favour, though they have become aware that the Heathrow runway is likely to damage Scotland and its airports. Labour and SNP MPs are concerned about yet more money being spent on London, rather than in the regions, and on the possible vast cost to taxpayers.
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Government deal to bail out Heathrow if runway plan fails – possible massive cost to taxpayers
Back in October 2016, the government did a deal (The Statement of Principles) with Heathrow (HAL), in which there are clauses implying the government would bail out any costs to the airport, if it does not finally get government approval to expand. There is no end date for the agreement. Though the document states it is non-binding, the wording is ambiguous - a gold-mine for lawyers? Justine Greening revealed this massive risk to taxpayers in Parliament, saying Heathrow "have somehow managed to get a poisoned pill agreed by DfT that means the taxpayer has to cover all their costs if things go wrong. Isn’t this the worst kind of nationalisation? The public sector and taxpayers bearing all the Heathrow downsides and risks but the private sector owning all of the upside and financial returns.” The Statement of Principles says: “HAL reserves its rights (including but not limited to its rights to pursue any and all legal and equitable remedies (including cost recovery) available to it under law) in the event of: .... The withdrawal of the Government’s support for aviation expansion for Heathrow Airport only after the Secretary of State has stated that HAL’s Scheme is the scheme it prefers in accordance with paragraph 1 of Part 1.” This was only mentioned in passing in the NPS and Justine is seek urgent clarity of the clause, in order to give an opportunity for the issue to be discussed in the House of Commons before MPs vote on the NPS proposal - within 3 weeks.
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Transport Secretary admits Heathrow 3rd runway would be bad for Birmingham Airport
Chris Grayling, Transport Secretary, in announcing formal backing by the government for the 3rd Heathrow runway, has admitted that this will be bad for business at Birmingham Airport. He said Birmingham would face “greater competitive pressure” as a result of Heathrow having a 3rd runway. The line Grayling is taking, to try and reassure regional airports, is that the 3rd runway will encourage more domestic flights. However, he knows perfectly well that it is up to airlines, not airports or government, to determine which routes they fly - unless given hefty public subsidies to keep unprofitable routes in operation. His assurances to regional airports are all qualified by statements like Heathrow will try, government will support etc. Nothing concrete. But as Birmingham Airport is so close to Heathrow, there will not be domestic flights to Heathrow, and all that will happen is Heathrow takes passengers away from Birmingham, and long haul destinations will increasingly be served exclusively by Heathrow. The government is well aware of this harm an expanded Heathrow will do to long haul services from other UK airports.
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As expected, Government approves outline plan for a 3rd Heathrow runway – which will then face legal challenge
Cabinet ministers have today given the official go-ahead for Heathrow expansion. This was never in doubt, as it is government policy. The NPS (now no longer a draft) was "laid before" Parliament, so now MPs will have to vote on them within 21 Parliamentary sitting days. ie. before Monday 9th July. Simon Dudley, leader of Windsor and Maidenhead borough council, said a coalition of four local authorities and Greenpeace would seek a legal review of the plans for a Heathrow 3rd runway, if MPs vote for the plans, as they are. approve unchanged plans. The councils (Windsor & Maidenhead, Wandsworth, Richmond and Hillingdon - some of the boroughs worst affected by Heathrow noise and other impacts) want the government to "satisfactorily address concerns" over noise and air pollution. Mr Dudley said the councils will look at the proposals to see whether their significant concerns on flight paths, "respite", night flights and air pollution have been addressed. If they have not, there will be a legal challenge. Greenpeace and the authorities contend new evidence on the severe health impacts of air and noise pollution makes the expansion of Heathrow far less likely to pass a review.
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Cabinet economic committee set for Heathrow 3rd runway decision, followed by Cabinet decision, followed by vote in Parliament within 21 working days
Controversial plans (the draft Airports NPS) for a 3rd Heathrow runway are set to be approved by ministers today, with the Cabinet’s economic sub-committee, chaired by Theresa May, signing off the plans. These would then be approved by the full Cabinet. Then the NPS is laid before Parliament, with a vote on it within 21 […]
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Call for the Competition & Markets Authority to investigate Heathrow
The No 3rd Runway Coalition has written to Lord Andrew Tyrie, the new chair of the Competition and Markets Authority (CMA), asking why the proposed expansion of Heathrow has not been scrutinised by the competition authorities. Heathrow is, by far, already the largest and busiest airport in the country. And with even proponents of the scheme accepting that Heathrow expansion would impact significantly on the smaller regional airports in the market, the letter suggests that competition authorities have been inactive. This is particularly surprising because the Competition Commission (the antecedent authority of the CMA) had stated that Heathrow already enjoyed such “substantial market power” that it would require further review and regulation, in future - even without a third runway. That situation would be far worse with a 50% larger Heathrow. Back in 2008, the then BAA had to sell off airports because it was seen to have too much market power - it sold Gatwick in October 2009, Edinburgh April 2012 and Stansted in January 2013 . The current government proposal to expand Heathrow would simply recreate that monopoly position, perhaps in an even worse form.
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Airlines do not want Heathrow to have control of building a 3rd runway – perhaps a “Buildco” instead?
British Airways and other airlines are hoping to take over building the possible 3rd Heathrow runway from the airport’s owner, because they do not want costs to escalate. They do not think the government or CAA has enough control over Heathrow to ensure it controls the costs of the massive expansion project. Passenger charges and investor returns are based on the total value of Heathrow's assets, (RAB) and this gives the perverse incentive for the airport not to keep its spending low. The more it spends, the more its owners can earn. An investigation by The Sunday Times in March highlighted widespread concerns over Heathrow's bloated spending. Willie Walsh (CEO of IAG) told the Transport Committee's inquiry in February that he had “zero” confidence that Heathrow’s operating company would deliver the project on time and on budget. He said it would be foolish to sign a “blank cheque”. To try to calm the airlines' fears, and get them behind the runway plans, the airlines are proposing a special-purpose company, known as a "Buildco", to deliver the project; Heathrow and the airlines would buy stakes in it. The government is trying to reassure the airlines by slightly increasing the CAA's remit and powers.