General News
Below are links to stories of general interest in relation to aviation and airports.
German air passenger tax (now €7 – 40) under threat as negotiations continue to form new German government
Negotiators for a new grand coalition between Chancellor Angela Merkel’s conservatives and Social Democrats may drop a proposal to progressively abolish Germany’s air transport tax (the Luftverkehrssteuer). The tax is levied on air ticket prices and costs between €7 and 40 euros depending on the distance flown, and generates about €1 billion per year. The airlines, of course, want the tax abolished, and claim it harms "competitiveness." Aviation in Germany already pays no VAT (except on domestic flights) and no fuel duty. The CDU (Merkel) and SPD negotiating teams were discussing abolishing the ticket tax, but so far the tax seems to have survived the talks. It would be crazy to allow aviation to pay even tax than it does now, bearing in mind its massive CO2 emissions. Aviation is on its way to eating up all of what remains of our chances to limit global warming to below 2°C as agreed in Paris. Aviation emissions are growing fast (up 8% in the EU in 2016), billions of people are waiting to catch their first flight (just 3% of India’s population have ever boarded a plane). Efficiency improvements in the sector are slow and shrinking. What’s more, by ignoring non-CO2 effects we’re underestimating aviation’s contribution to global warming by a factor of at least two.
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Non-CO2 climate impacts of aviation mean it is 2 – 3 times more damaging than the industry claims
While IATA considers global aviation accounts for about 2% of man-made CO2 emissions, this is a serious underestimate of the sector's impact on climate change. According to Professor Dr Volker Grewe, a researcher on atmospheric physics at Delft in Holland, air transport’s contribution to climate change is roughly 5%. This is because in addition to emitting CO2, aircraft flying at altitude impact the atmosphere in various ways which have a large, albeit transient, additional warming effect. The main contributors of aviation-induced radiative forcing are: CO2, nitrogen oxides (NOx) and contrail/cirrus cloud formation. As are the contrails and resultant cloud formation which trap radiation escaping from the Earth, and the effect is very significant. However, the effect is smaller in some parts of the globe than others, so small reductions in the non-CO2 impact could be achieved from a bit of re-routing. Optimising the speed and cruise altitude also help a bit. However, the EU emissions trading system for aviation ignores non-CO2 impacts. Brussels NGO T&E says the non-CO2 impacts should be included. "When aviation was included in the ETS in 2008 the directive in fact called on the European Commission to assess the non-CO2 impacts and propose action. Nothing transpired but this call was renewed in the revisions to the directive agreed last year requesting the Commission to assess and propose by 2020. The time to act is well overdue."
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Economic advisors, Prof Peter Mackie & Brian Pearce respond to Heathrow questions by Transport Select Cttee
As part of their inquiry into the plans for a Heathrow 3rd runway, in the Airports NPS, the Transport Select Committee wrote on 16th January - with a list of questions - to two economic experts, Professor Peter Mackie, (Institute for Transport Studies, Leeds University) and Brian Pearce (Chief Economist, IATA UK) who advised the Airports Commission (and who were critical of the way the Commission worked out alleged future economic benefits of a Heathrow runway). Mackie & Price have replied in some detail, and some of their comments can be seen below. Asked about the economic impact of the airport not being full in 2 -3 years, but (as John Holland-Kaye has said) over 10 - 15 years, they say: "...that ought to be reflected in the capacity model and profile of shadow costs over time." Asked about carbon costs, they say: "... we cannot comment either on the probability of a fully effective international carbon trading scheme being in place in the timeframe, nor on the striking price of carbon and its trend over time." And on Heathrow landing charges they say the DfT's main case assumes "the benefit of the reduced shadow cost will be fully passed through to travellers while increases in landing charges to fund the infrastructure will be absorbed by airlines. This particular combination seems a bit unlikely."
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EasyJet making plans to ensure it is still seen as a UK airline, after Brexit
EasyJet is ensuring it is safe after Brexit, by working to meet EU ownership rules. There is uncertainty about that happens to UK and European-owned airlines after Brexit. These include agreeing a new legal basis for British airlines to operate flights between EU countries, and also ownership rules requiring airlines operating in the EU to be majority controlled by EU countries. Shareholders at easyJet’s AGM approved changes to its Articles of Association that will ensure it is EU-owned and controlled after Brexit. The move is an “important element in ensuring that easyJet plc has the ability to maintain EU ownership and control at all times should we need to do so”. EasyJet expects the CAA to grant it a UK air operator’s certificate in the coming weeks, to cover its UK-based aircraft. Government had confirmed that the airline — easyJet UK — will be treated as a British carrier when Britain had left the EU, and its parent company is EU-owned. EasyJet is one of the first to make moves to protect its flying rights after Brexit. Ryanair has applied for a British air operator’s certificate, so it can continue flying in the UK after Brexit.
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Eurostar launching direct London to Amsterdam service (2 per day) from April – to rival cheap flights
Eurostar is launching direct services between London St Pancras and Amsterdam, starting on 4th April 2018. There will be 2 trains per day (08.31 and 17.31), taking 3 hours and 41 minutes, direct. But for an initial temporary period, the Eurostar service will only run direct one-way, from London to Amsterday, and passengers travelling the other way - Holland to London -will have to change at Brussels to clear passport controls. It is hoped the passport checks will be done in the Netherlands, saving the Brussels change, from the end of 2019. Five years ago, the German operator Deutsche Bahn announced and then cancelled a link between the UK and Amsterdam and The Hague, but there were set-backs. It is likely that demand will come largely from the UK at first, as we are used to Eurostar. However, the 2 trains per day is a lot less than 70 direct flights daily from London to Amsterdam. Fares will be comparable, starting at £35 for a one-way ticket. Trains will have power sockets and free wifi, making the trip attractive to business and leisure passengers. Over 4 million passengers travel between London and Amsterdam by air each year and therefore the market is the same size as it was when the London-Paris services launched in 1994.
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Grayling makes key admissions on serious problems with a 3rd Heathrow runway, at Transport Committee hearing
Chris Grayling, Secretary of State for Transport, made several assertions when he appeared before the inquiry on the Airports National Policy Statement, held by the Transport Select Committee on 7th February. When questioned about Heathrow's regional connectivity, he confirmed that many of the domestic routes, promised by Heathrow, would not be commercially viable and would require taxpayer funded Public Service Obligation (PSO) subsidy orders, if they were to ever materialise. Grayling also confirmed that, although up to 121,000 residents around the airport would be expected to suffer the impact of the further air pollution concentrations, likely to flow from the extra flights required to meet the DfT's own recently updated passenger demand forecasts, the government was yet to undertake any work to assess those impacts. Mr Grayling also confirmed that there would be a 'real risk' of non-compliance on air quality, were Heathrow to expand, and that the Government's own analysis expects that risk to be heightened in the years 2026 – 2030. He also confirmed that the 3rd runway would mean a reduction in respite from noise, for adversely impacted residents. Details with extracts from transcripts at the link below. Paul McGuinness, Chair of the No 3rd Runway coalition commented on the NPS that "To proceed on the basis of evidence that unravels, on scrutiny, would simply be unacceptable".
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Manchester airport infuriated by Holland-Kaye claim that Manchester area “needs” Heathrow for business
Giving evidence to MPs at the Transport Select Committee, on the proposed 3rd runway, Heathrow chief executive John Holland-Kaye claimed those living in areas like Greater Manchester ‘needed Heathrow’ to sustain business links with the world. But Andrew Cowan, CEO of Manchester Airport, has accused him of making ‘misleading claims’ about its importance to Manchester passengers - and the UK economy. Holland-Kaye also claimed that the services Manchester had won - like Cathay Pacific’s direct route to Hong Kong - were thanks to Heathrow trail-blazing the route first. He tried to make out that Heathrow has a ‘unique’ position in providing long haul routes to countries like China, despite Manchester’s existing Beijing route along with Guangzhou and Shanghai services in the pipeline. Heathrow clams these are vital for business, despite admitting most passengers are not on business - they just facilitate more flights to destinations where business might be done. Heathrow always says, as its mantra, that "only" Heathrow can provide "connectivity" to world destinations. Andrew Cowan said Heathrow continues to make misleading claims about its benefit to the UK economy, and Heathrow "is far from being unique in connecting UK businesses to global markets." Manchester is important for the Northern Powerhouse, jobs in the north and rebalancing UK economic growth.
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John Holland-Kaye appears before Commons Transport Committee for grilling on 3rd runway problems
Heathrow’s chief executive, John Holland-Kaye, appeared before the Commons Transport Select Committee to give evidence for their inquiry into the proposed 3rd runway (the Airports NPS inquiry). He tried to defend claims that the runway, and 50% more flights, would result in a cut in road traffic connected with the airport. He tried to insist the airport's pledges on air quality levels would be met if a 3rd runway went ahead. The comments came after Tory MP and committee member Huw Merriman said that a number of airport commitments had “somewhat unravelled”. Heathrow are trying to persuade MPs etc that they have a "triple lock" on the problem of air pollution, and it had a “strong plan” to deal with traffic levels. He blames road vehicles, nothing to do with Heathrow, for local air pollution - and gave confusing evidence about whether Heathrow could, or could not, count the number of vehicle journeys associated with the airport. (If they cannot count them, then cannot confirm they have not increased ...). Asked if he could make a “firm commitment” that landing charges would not increase, Mr Holland-Kaye told MPs: “At this stage I couldn’t...." And he blathered when asked by Lilian Greenwood about the financial benefits of Heathrow, if it only reached a 50% increase in flights over 10 - 15 years, not just a few.
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British Airways owner IAG wants break up of Heathrow monopoly, with separate companies managing terminals
British Airways’ owner IAG (Willie Walsh) has called on government to break up Heathrow’s “monopoly” of infrastructure, suggesting to the CAA that other companies could run the different terminals to create competition and cheaper flights for consumers. IAG, which is Heathrow's largest customer, said the airport’s planned expansion could allow independent firms to create and run new terminals more effectively than Heathrow’s current owners, with lower costs to airlines - and better cost control. IAG is desperate for charges by Heathrow not to rise, to pay for its runway etc. Walsh said: “Heathrow’s had it too good for too long and the government must confirm the CAA’s powers to introduce this type of competition. ... This would cut costs, diversify funding and ensure developments are completed on time, leading to a win-win for customers.” BA runs a terminal at JFK airport in New York and there are European examples at Frankfurt and Munich airports. Heathrow has a real problem, becoming ever more clear, with funding for its expansion plans. Chris Grayling has said Heathrow landing charges (already some of the world's highest) “should be kept as close as possible to current levels.” A vote is due to be held this summer in the Commons on the Airports National Policy Statement (NPS).
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European Environment Agency: Reducing CO2 emissions from aviation ‘requires systemic change’ to cut demand
The EEA (European Environment Agency) says reducing CO2 emissions from Europe’s aviation and shipping industries requires systemic change, rather than simply improving efficiency. In a new report they say a massive shift in innovation, consumer behaviour and the take up of more ambitious green technologies to power aircraft and cargo ships are crucial. Both aviation and shipping have grown fast in recent years, and by 2050, the two are anticipated to contribute almost 40% of global CO2 emissions unless further mitigation is taken. Incremental small improvements in fuel efficiency will not be enough. For air travel, changes in lifestyle and culture are needed eg. more shift to rail and less demand for material imported material goods. Governments have a key role to play. The role of continuing subsidies to the aviation industry is important in maintaining high demand for air travel. There needs to be a change to the "attitude-action gap" whereby expressed "environmental awareness by individuals does not translate into reductions in flight demand." ... " there will be a need for wider conversations around the types of lifestyle that will help enable sustainable mobility". They are not convinced aviation biofuels will be anything more than minimal.