General News
Below are links to stories of general interest in relation to aviation and airports.
Heathrow senior executives would get large bonuses if they manage to get 3rd runway
The Guardian has revealed that Heathrow's annual report (December 2015) show that its top executives would benefit personally if the airport gets a 3rd runway. This is despite past denials that there were any financial incentives, not least when senior executives at Gatwick were found in February to have huge financial incentives if they manage to get a 2nd runway. Heathrow Airport Holdings Ltd states: "During the year a new bonus scheme was launched based on EBITDA, passenger service (as measured by independent ASQ - Airport Service Quality - scores) and airport expansion over the Q6 period...." [Q6 is the 5 year regulatory period 2014 - 2019]. A Heathrow spokesman said the runway bonus would only be a small part of a payout for meeting the strategic requirements of the business, hitting the profit targets etc. CEO John Holland-Kaye earned £2.06m last year, more than doubling his basic salary of £885,000. However, he could add even more to that should a 3rd runway be approved. The annual report states that while a bonus scheme linked to expansion was launched in 2015, “as the performance in respect of this scheme is so uncertain at this stage, no value in relation to these awards is included” in his 2015 earnings package. The Guardian says John Holland-Kaye is believed to be the architect of the new bonus scheme. The airport cut its wider wage bill by cutting 300 jobs last year (6,714 compared to 7,047 in 2014), but directors' pay rose.
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Heathrow’s commitment on 4th runway – what is Heathrow really saying?
The Airports Commission said, in giving its recommendation that a 3rd Heathrow runway should be built, that a firm condition was that no 4th runway should ever be built there. The Commission's wording in its Final Report (1.7.2015) was: "A fourth runway should be firmly ruled out. The government should make a commitment in Parliament not to expand the airport further. There is no sound operational or environmental case for a four runway Heathrow." And "This may be as part of a National Policy Statement or through legislation." What Heathrow has now said is that it will: "Accept a commitment from Government ruling out any fourth runway." This does not say this ban on a 4th runway would be in legislation. It merely says there would be a commitment. But the coalition government made a commitment not to build a 3rd runway, in 2010. That commitment was then overturned in the next Parliament. It scarcely encourages trust. A commentator in the Huffington Post says (as well as the long history of Heathrow's broken promises) that allowing the 3rd Heathrow runway would effectively say Heathrow is now and ever will be the UK's hub airport. Hub airports actually "need at least four runways and preferably room to expand further."
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Willie Walsh reiterates that he will fight Heathrow runway, due to cost; content with 3 hub system for IAG instead
Willie Walsh has reiterated his determination not to pay the exorbitant costs of a new Heathrow runway (and that's without the costs that the taxpayer would have to pick up for surface access improvements - which could be £20 billion). He said the current proposal to build a 3rd Heathrow runway is “indefensible” from a cost point of view and he will fight it. BA holds over 50% of Heathrow's slots. Walsh said he was worried about the current Heathrow proposal because there was now “desperation by the airport to get a third runway and they are willing to do anything to get it.” He commented: “So the airport is incentivised to spend money while I am incentivised to save money.” Because the coalition government blocked a 3rd runway in 2010, in January 2011 BA and Iberia were merged to form IAG. Then IAG bought UK airline BMI, to get hold of its Heathrow slots, gaining an extra 42 pairs. That ensured IAG had enough Heathrow slots to secure its ability to compete from its hub base. Since then Walsh has made his plans to use a 3 hub strategy - with Madrid and Dublin as its two others, not depending so much on Heathrow. IAG also owns Iberia, Vueling and Aer Lingus. Dublin will be adding a new runway - probably by 2020.
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Lord True, Richmond Council leader and Conservative peer, describes Heathrow promises as ‘worthless’ and asks David Cameron to deny expansion immediately
The leader of Richmond Council, Lord True, has called Heathrow's pledge to ban night flights a "feeble attempt to bribe London." He described Heathrow's promises as “worthless” and said on the ending of night flights: "This so-called pledge falls short of what the Davies Commission requests and the Heathrow PR men simply cannot be believed. If they can stop pre-5.30am flights, why don’t they do it now? Rather than spending billions of pounds doing it?” On Heathrow's claims about air quality improvements, Lord True commented:: “They cannot comply with EU air quality limits and their ‘jam’ promises are worthless.....if people’s health comes first – big Heathrow is dead in the water.” He said Heathrow had just made some token alterations to their original proposals. Richmond Council, along with Wandsworth, Hillingdon and Windsor & Maidenhead councils, have already made it clear that should the Government give a 3rd Heathrow runway the go-ahead – they would together launch legal action opposing the plans. Lord True: “I say to Mr Cameron – hundreds of thousands of Londoners remember your promise – “no ifs, no buts,” ....We expect our Prime Minister to keep his promise...."
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Heathrow makes guarded, carefully worded, offers to meet Airports Commission conditions for 3rd runway
Heathrow knows it has a difficult task in persuading the government that it can actually meet the (unchallenging) conditions put on its runway plans by the Airports Commission. Now John Holland-Kaye has written to David Cameron, setting out how Heathrow hopes to meet some conditions. They make out they will even exceed the conditions, in some cases. On Night flights, they say they will introduce a "legally binding ban on all scheduled night flights for six and a half hours (as recommended by the Airports Commission) from 11 pm to 5:30 am when the third runway opens." [Note, scheduled - not late arrivals etc]. And they will "support the earlier introduction of this extended ban on night flights by Government as soon as the necessary airspace has been modernised after planning consent for the third runway has been secured." [ie. full of caveats]. They dodge the issue of agreeing not to build a 4th runway, saying if the government makes a commitment in Parliament not to expand Heathrow further, then Heathrow will "Accept a commitment from Government ruling out any fourth runway.." [Words carefully chosen]. On noise and respite, Heathrow say "We will ensure there will be some respite for everyone living under the final flight path by using advances in navigational technology. We will consult and provide options on our proposals to alternate use of the runways." [ie carefully chosen words, avoiding giving much away].
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After just a few days as Mayor, Sadiq Khan drops GLA objection to compulsory purchase of land for London City Airport expansion
Within the first few days as London Mayor, Sadiq Khan has re-opened the possibility of expansion at London City Airport. He has dropped the GLA objection to a compulsory purchase order of 26.4 hectares in the Docklands, owned by City Hall. The airport will get the result of its recent appeal against refusal of expansion plans, by Boris Johnson, later this year. The GLA said: “The Mayor continues to support the case for improved noise mitigation measures that will be considered by the Secretary of State when he decides on the planning appeal in due course.” Khan had said in November 2015, during his election campaign, that he would look again at the prospect of the airport expanding. Boris had rejected it, on noise grounds. Meanwhile the owners of London City Airport paid themselves a £27.7m dividend payout last year after the airport attracted its highest ever number of passengers, increasing profits by almost 20%. The airport, while being considered to have the largest proportion of business passengers, in increasingly for leisure trips. London City's higher customer numbers last year were in part driven by its new travel routes including Berne, Hamburg, Mykonos and Santorini (all just holiday destinations) and extra flights to Edinburgh, Luxenbourg, Geneva and Guernsey.
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Emirates expects reducing demand for domestic flights to Heathrow, as regional airports increase long-haul routes
The Times reports comments by Laurie Berryman, of Emirates, predicting that the demand for domestic flights in the UK will drop markedly in future. He considers that flights between London and Manchester could end altogether within ten years, because of HS2. The demand for internal flights is reducing each year, except for trips that take too long by train, such as to Glasgow, Edinburgh or further north in Scotland. This combines with the increase in long-haul flights from regional airports. Passengers in the regions have no desire to transfer via Heathrow, but would rather go direct. Or they are happy to transfer in Dubai or another airport - not necessarily via Heathrow. The HS2 rail line may be able to connect Manchester to London in under an hour and a quarter, which is about the same time as flying. Virgin's Little Red domestic airline closed in 2015, due to insufficient demand for its flights into Heathrow. Mr Berryman said: "People who live in Manchester who want to go to Mumbai go via Dubai, not via London." If Heathrow got another runway, it would damage the profitability of long haul flights from the regional airports. If it does not have another runway, its slots are too valuable to use on domestic routes. Emirates is increasing its long haul routes from Manchester and Birmingham.
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Recent opponent of Heathrow runway, Sadiq Khan, appoints pro-Heathrow runway, Lord Adonis on transport
Until June 2015, Sadiq Khan (now London Mayor) backed a 3rd Heathrow runway. He was Transport Minister under Gordon Brown, pushing for it. He then appreciated that he could not be elected Mayor if he backed the runway as it is so unpopular with millions of Londoners, who are adversely affected by it. Ministers are saying his election, and his opposition to a 3rd runway, will not influence their runway decision. The Mayor's opinion on a runway carries some weight, though they cannot make the decision. Worryingly, Sadiq will appoint former Transport Secretary Lord Adonis, who strongly backs a Heathrow runway, to run transport in London. The Labour peer also heads the government’s National Infrastructure Commission. Sadiq backs a 2nd runway at Gatwick to increase airport capacity, as people in areas adversely affected by Gatwick did not get to vote in the Mayoral election. He also backs improved rail links to Stansted. It would be easier for a Conservative government to resist the opposition of a Labour mayor, than a Tory one, to a Heathrow expansion. Transport Professor, David Metz, said: "There is a respectable case for deferring this difficult political decision, to see how a very competitive aviation sector copes with the growth of demand for air travel" ... seeing how market forces displace leisure travellers from Heathrow to Stansted in future.
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NATS suggests change to “stacking” system, with priority given to the largest planes with transfer passengers
NATS have proposed a different method by which planes queue to land, in order to get even more flights safely using crowded UK airspace. At present, if planes arrive early and have to wait for a landing slot, they enter a stack about 10 nautical miles wide and spiral downwards from about 11,000 feet till called in to land, leaving the stack at around 7,000 feet. The plan would be for planes to circle at about 13,000 feet or more, in a stack about 20 - 25 nautical miles wide, and be called off that, to come in to land. The plan is also to give planes with more passengers, and with more transfer passengers priority, if the airline requests this, so they land earlier - than those without transfer passengers. Currently they get landing slots on a first come, first served basis. NATS says there are around 2.4 million UK flights now, but they expect this number to rise to 3 million in 15 years, and they need to accommodate them all. Without the changes there might be delays. NATS also suggest use of more flight routes, giving the potential for noise to be shared out. However, this means people not currently overflown being affected for the first time, and would significantly increase the numbers affected. There will be a DfT consultation on elements of aircraft noise policy and airspace change, probably in the 2nd half of 2016.
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Residents invite Transport Select Cttee Chair – Louise Ellman – to Heathrow Villages that she wants destroyed for runway
Local resident-led group Stop Heathrow Expansion (SHE) has issued an open invitation to Louise Ellman MP, Chair of the Commons Transport Select Committee, to visit Harmondsworth, Sipson, Longford and Harlington – the villages around Heathrow that would be destroyed or largely uninhabitable if a third runway were to be built. The invitation comes as the Committee published a report which repeats previous calls to the Government for a rapid decision on Heathrow expansion, which the committee strongly supports. The DfT agreed to respond to the report by the end of May. It said: "We are undertaking more work on environmental impacts, including air quality, noise and carbon so we can develop the best possible package of measures to mitigate the impacts on local people.”" But the Transport Committee, gung-ho for a runway regardless of the problems (and entirely omitting mention of the vast cost to the taxpayer for surface transport) said "we believe that the noise and environmental effects can be managed as part of the pre-construction phase after a decision has been made on location, as can the challenge of improving surface access and devising suitable schemes for compensation for residents in affected communities."