General News
Below are links to stories of general interest in relation to aviation and airports.
Firm behind report calling for a 50% cut in APD – York Aviation – linked to airlines. Hence bias.
The Herald Scotland reports that a report claiming a reduction in Air Passenger Duty (APD) could boost the Scottish economy by £1 billion was based on research by a firm that has worked for major aviation companies. This is York Aviation - which has done numerous reports for the industry over the years, each biased in favour of aviation, with very partial and incomplete analysis. The study is at Edinburgh Airport The impact of reducing APD on Scotland’s airports March 2015 The new report was done for Edinburgh airport, presenting findings useful to their client. Ryanair is another of York Aviation's clients, which again stands to benefit if the report is taken seriously. Green MSP Alison Johnstone said she was not surprised that an "aviation-friendly consultancy" was involved in a "PR exercise" for big business. The new York Aviation report makes claims, such as how cutting APD by 50% would create 4,000 jobs and boost the economy by £1bn within five years. However, as with all York Aviation reports, it makes no mention whatsoever of downsides - or of money taken out of Scotland by cheaper holiday flights by Scottish people. Links to many other York Aviation reports are given here. A spokeswoman for York Aviation said: "We do relatively little work for airlines."
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Troubled Berlin Brandenburg airport, due to open in June 2012, could be shut down in late summer unless €1.1 billion is raised
Berlin Brandenburg (BER) airport was intended to be a huge new airport for Berlin, so Berlin-Schönefeld and Tegel airports could close. The BER was initially due to open in June 2012. It had a catalogue of problems with fire safety, smoke extraction system, and fresh air supply in the event of fire. The launch has been delayed and delayed .... last year it was hoped it might open this year. Now the airport's CEO has announced that it is possible the construction of the airport may need to be shut down this summer, if a further €1.1 billion cannot be raised. Some €4.3 billion has already been spent, but that only lasts till this summer. Extra costs have been incurred due to the late opening, as well as the extra construction costs. A decision on how €1.1 billion can be raised is needed urgently, perhaps through bank loans, government grants or from an investor. The money has to not only be agreed by Berlin, Brandenburg and the federal government, but also needs approval from the EU Commission. Current total costs amount to €5.4 billion. Additional plans suggest additional costs amounting to an extra €2.19 billion. Although the airport has yet to open, officials are planning a possible third runway for approximately €1 billion and other new projects such as an additional terminal, expanded baggage system and another freight facility. The total additional spending would amount to €3.2 billion.
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“Gatwick Obviously NOT” serves Judicial Review upon the CAA, on airspace change, with Gatwick Airport as an “Interested Party”
The relatively new campaign, "Gatwick Obviously NOT", (GON) which was set up in response to changes to flight paths to the east of Gatwick airport during summer 2014, has served a Judicial Review upon the CAA, with Gatwick Airport Limited and the Secretary of State for Transport listed under the CAA as an 'Interested Party'. The claim is being brought by Martin Baraud, the Chair of GON. The "Ground of Claim" is that there has indeed been a change in the use of airspace and that the CAA should first have consulted on such change before it was put into effect by GAL and NATS. To date no consultation has taken place and this whole procedure has been bypassed. GON wants proper consultation, and that a full airspace change process is carried out. They also want there to be no airspace changes by the CAA without approval by the Secretary of State. GON has already succeeded in raising over £100,000 and they will be fundraising further, for more legal costs.
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HS2 Heathrow spur plans dropped by transport minister, before Airports Commission report
Plans for a new rail spur to Heathrow as part of the HS2 high-speed network have been ruled out by the transport minister Patrick McLoughlin. He was responding to a question by MP Dominic Grieve (MP for Beaconsfield) about the Heathrow spur. Mr McLoughlin said: "I would now like to make clear that we do not intend to build the spur as part of Phase 1 or 2 of the HS2 scheme". Previously the government had said any decision about the Heathrow spur would be delayed until the Airports Commission's report with its runway recommendation - which is probably due at the end of June. Mr McLoughlin cited the Airports Commission's findings - published as part of its consultation in November 2014 - which said: "This review ... supports the view that an HS2 spur to Heathrow airport (whether to the airport site or a hub station) is not necessary to support expansion of the airport." Nick Hurd, Conservative MP for Ruislip, Northwood and Pinner was "delighted" that the spur had been dropped, and believed the best way of connecting passengers to Heathrow was via Old Oak Common. Paul Prentice of Rail magazine said it was a "very sensible decision. Bearing in mind there is already a spur tunnel to Heathrow and another western link being built".
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Airlines reported to be ignoring chancellor by not passing on oil price cut benefits to passengers
Airlines are on a reported collision course with chancellor George Osborne for ignoring his call to pass on the benefits of lower oil prices by cutting fares. A dramatically lower oil price has slashed the cost of jet fuel but critics claim airlines have resisted passing on the savings by lower ticket prices. The price of crude oil fell from more than $100 a barrel last September to $60 a barrel this month and the cost of jet fuel has dropped 39% in the past year. But the Sunday Times reported that latest figures show the cost of UK air fares in January was up 4% compared with the same month in 2014. Airlines claim they are unable to pass on the benefit of lower oil prices at the moment partly because they have hedged a large proportion of their fuel this year, effectively buying it in advance when its cost was much higher. Airline industry sources accused the chancellor of posturing, according to the Sunday Times, and trying to appear "as a man of the people." Qantas has announced that it is abolishing fuel surcharges — but is raising its base fares to compensate for the cut. Emirates is considering what action to take.
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DfT hires Heathrow PR director Simon Baugh – to start briefing ministers etc on runways after 30th September
Simon Baugh, who is currently director of PR at Heathrow Airport, is moving to the DfT to take up the role of group director of comms. He takes up the new job on 30th March. Baugh said: "I can’t think of a more exciting time to be joining the team or to be promoting the role that transport plays in driving UK economic growth." He has been overseeing PR at Heathrow, which included the launch in late 2013 of Back Heathrow, a 'grassroots' (astoturfing - deeply controversial) campaign. On 20th February Zac Goldsmith put a written question in Parliament: "To ask the Secretary of State for Transport, what recruitment process was used when hiring Simon Baugh, Group Director of Communications for his Department; and what role Mr Baugh will have in his Department after the Airports Commission has made its recommendation on airport expansion in the South East." Reply by DfT spokesperson: "As Mr Baugh was previously employed by Heathrow Airport Ltd, he will not be involved in advising Ministers on issues relating to the work of the Airports Commission for the 6 months following his appointment, which starts on 30 March 2015." ie. the Commission may report at the end of June, and Simon Baugh can start briefing etc by 30th September.
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Study by York Aviation for Edinburgh airport suggests a 50% + cut in APD in Scotland could “boost Scottish economy by £200m per year”
Another study by York Aviation (who have done numerous studies giving huge figures of the amount of benefit created by the aviation industry ....) says that cutting APD by 50% in Scotland could boost Scotland's economy by £1bn by 2020 and create almost 4,000 new jobs. The study was commissioned by Edinburgh Airport. Powers over APD are to be devolved to Holyrood following recommendations by the Smith Commission. However, a specific date has yet to be set as the move requires UK legislation to be passed. York Aviation believe a 50% cut in APD would "create £200m per annum in GVA (gross value added) by 2020". They also believe Scottish airports could get 700,000 more passengers coming through Scotland's airports in the first year, if APD in Scotland was cut by at least 50%. These would be passengers either coming from England, or not using English airports. The number might rise to about 900,000 passengers, after five years. York Aviation never considers the loss to the economy of the money taken out of the country by people going on holidays abroad - which would rise if APD was cut. They only ever consider inbound tourism and business flights. If Scotland lost the tax revenue from APD it would need to make up the shortfall from elsewhere.
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Germany fines aircraft operators €5.36 million as it publishes first Aviation EU ETS non-compliance list
GreenAir online reports that Germany has become the first EU country to publish a list of aircraft operators that have not complied with the EU ETS for emissions in 2012. Other countries have not published lists, but the number not complying is thought to be quite high. According to the German Emissions Trading Authority (DEHSt), fines totalling €5,363,400 have been levied on the 44 operators named. Most are small aircraft operators. Under Article 16 of the EU directive that brought aviation into the EU ETS, EU member states must publish the names of aircraft operators they administer that are in breach of requirements to surrender sufficient allowances to cover their emissions. For 2012, the allowances were required to be submitted by the end of April 2013 but nearly two years on, an unspecified number of airlines and smaller aircraft operators remain non-compliant. The penalties are €100 for each tonne of CO2 emitted for which the aircraft operator has not surrendered allowances. It is clear that there is a reluctance by states to publish publicly-available lists of non-compliant airlines, particularly those from outside Europe. This is likely to be due to "political sensitivities" as discussions continue at an international level to agree a global market-based measure for aviation CO2.
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Heathrow opposition rally shows united cross-party rejection of 3rd runway
Simply No. That was the message of a cross-party rally staged by HACAN in central London on March 3rd. MPs from across the political spectrum lined up with environmental NGOs, local authority leaders, businessmen and trade union leaders to pledge opposition to a 3rd runway at Heathrow. Hundreds of people from London and the South East, including many whose homes are threatened by a new runway, showed their determination that the runway will not be built. Twickenham MP Vince Cable made it clear that Liberal Democrat policy remained one of total opposition to a third runway. He said there was no sound economic reason why Heathrow needed to expand. John McDonnell, the Labour MP for Hayes and Harlington, thousands of whose constituents are facing the loss of their homes, predicted that any decision to go-ahead with a new runway would result in the biggest direct action environmental protest in Europe. As a reminder of the determined and successful campaign against the runway, last time around, people at the rally held up pictures of the huge "NO" spelt out on the ground in Sipson, at the May 2008 protest. HACAN chair John Stewart said: “The rally sent a loud and clear message to the next Government: build a new runway at your peril. The coalition which saw it off last time round is still alive, well and fighting.”
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Disproportionate investment in the south east unfair to regions – and taxpayers – disadvantaging the north
There is often well informed comment on the PPRuNe (the Professional Pilots Rumour Network) forum. A recent discussion was on the price to be paid by the UK for a new Heathrow, or Gatwick, runway. The contributors are amazed by the scale of the costs involved, not only the price of a runway, but the cost to the taxpayer. And those who are not focused on the south east are unimpressed by the amount the government would be spending on the south east, only to disadvantage airports in the regions. It would not only be the regional airports that would suffer, but the regional economies. While in theory there would be "trickle down" of economic benefits, from the south east to the regions, the reality is very little trickle indeed. The south east has had huge investment projects (Crossrail 2, HSI, Channel Tunnel, Thameslink...) "The 70% of us Brits who don't reside in the SE wish you well with all your recently-added super-infrastructure. But we kind of feel that it is time for a bit of state largesse to head in our direction for a change. It is not an unreasonable idea. The non-SE 70% are taxed at exactly the same rates as Londoners." "The North has not yet had a single standalone publicly-funded infrastructure project approved at a price tag exceeding £1 billion ...and to the best of my knowledge neither has any other region of the UK outside the SE." See the Pprune forum discussion for more.