General News
Below are links to stories of general interest in relation to aviation and airports.
Analysis shows 84m tonnes of aviation CO2 covered by EU ETS in 2012 as cargo airlines reap windfalls
According an analysis by the organisation "Sandbag", over 1,169 participating airlines and aircraft operators reported between them a total of 84 million tonnes of CO2 emissions for the first year of aviation’s inclusion in the EU Emissions Trading Scheme (EU ETS). Around 89% of eligible operators fully complied with the scheme, representing 98% of intra-EU aviation emissions. 42% of all emissions coming from just 10 EU airlines. Although the one-year ‘Stop the Clock’ (STC) derogation - which started in November 2012 - allowed operators to opt out of having to surrender allowances for extra-EU international flights, a number of major air cargo carriers based inside and outside the EU chose to comply with the full scope of the scheme, enabling them to end 2012 with a windfall, says Sandbag. Also, though the majority of operators have incurred a cost as a result of their inclusion in the EU ETS, Sandbag estimates that Europe's biggest emitter, Ryanair, stood to reap a windfall in 2012 of around €8 million through its passenger EU ETS levy. Of the 11 million offsets were surrendered, it is estimated that 5.6 million, were to CDM (Clean Development Projects) in China, while the remaining 5.3 million originated from Russia JI (joint implementation) projects – countries implacably opposed to the Aviation EU ETS.
Click here to view full story...
CAA decides on no further price regulation at Stansted, but only RPI -1.5% charges at Heathrow and more controls on Gatwick
The CAA has published its final decisions on economic regulation at Heathrow, Gatwick and Stansted after April 2014. They say the new situation, with each airport having a different owner, reflects the unique circumstances of individual airports. Considering the market power of each airport means passengers would not benefit from further regulation of Stansted, but that Heathrow and Gatwick will both need further airport licences from April 2014 onwards. Current landing charges are £20.71 per passenger at Heathrow and £8.80 (2014 prices) at Gatwick. CAA says: "At Heathrow, the CAA’s price control decision will see prices fall in real terms by 1.5% per year between 2014 and 2019 (RPI-1.5%). This has changed from the CAA’s Final Proposals published in October, which suggested prices rising in line with inflation. The changes have been made as passenger traffic forecasts have strengthened since October, and the cost of capital has been revised. The CAA supports more diversity in what Gatwick offers to its various airlines, so passengers receive a tailored service. It has therefore based regulation on the airport operator’s own commitments to its airline customers." Heathrow is deeply displeased. Gatwick is mildly displeased. Stansted is happy. Ryanair's share value fell. .
Click here to view full story...
Airlines hoping for rise in premium traffic in 2014 as end of recession means more corporate spend on air travel
Airlines are hoping the global economy is recovering, and continues to recover. Airlines make a disproportionate of their income from premium travel, so do all they can to compete for it. IAF and Air France-KLM have recently reported increases in their premium traffic, and a survey by "Buying Business Travel" indicated that some companies may be increasing their corporate travel budgets in 2014, and also plan to fly as much, or more, than in 2012. John Strickland, a consultant at JLS Consulting, said long-haul premium traffic should be the airline’s biggest focus - it makes most profit. He said: "Short haul is not the area where [premium travel volumes] are critical. Those glory days have gone." EasyJet and Ryanair are trying to get the price-sensitive business passengers in Europe. Traffic out of emerging markets in Asia, the Middle East and Latin American would be increasingly significant with more premium travel. There is likely to be more growth in "premium economy" which is useful for people whose budgets won’t extend to fully fledged business class. IATA premium traffic data each month indicates that the international growth is around 4 - 5% on average, with growth in 2012 of 4.8% over 2011. .
Click here to view full story...
Simon Calder: “Transit traffic and the airport problem” – transfer, hub, point-to-point ?
Simon Calder gives some insights into how airlines manage transit passengers,and "Origin & Destination" (O&D) passengers - which is at the heart of the hub / point-to-point airport question that will be influential in the Airports Commission recommendations. Heathrow and BA want a larger hub at Heathrow, so they can lay on more flights to more destinations, with higher load factors and hence more profit - by sucking in transit passengers. However, many passengers prefer to pay a bit more and fly direct, without a transit. Calder says what BA wants is for every seat on every flight from Heathrow to its long haul destinations would be filled, by people starting their journey in London ..... BA has little trouble filling the plane with O&D passengers on some days, but on others the demand simply isn't there. BA's extensive network allows it to turn transit traffic on and off like a tap, putting lots of tempting fares into the market when loads are light - or raising them. Hence fares vary hugely day to day. Calder says the biggest threat to Heathrow is now coming from Istanbul, to where direct flights using smaller 737s can connect from many UK regional airports, for onward transfers. Heathrow says a 2nd Gatwick runway would dilute transit traffic at Heathrow, making many BA routes unviable.
Click here to view full story...
GACC debunks alleged benefits of a 2nd Gatwick runway
GACC - the Gatwick Area Conservation Campaign - has set out its reaction to the Airports Commission decision to short-list Gatwick. One of the main negative impacts at Gatwick is seen as the urbanisation of the area, which would be the result of an influx of around 40,000 new families attracted into the area from other parts of the UK and the EU. GACC does not believe an additional Gatwick would bring large economic benefits to the existing residents of the area. The Gatwick area has a comparatively low level of unemployment. A new runway would certainly bring new workers, moving into the area - who would get most of the new jobs, first in construction (building the airport and the required housing) and then at the airport. The in-comers would derive economic benefits. The hundreds of new firms (which the Gatwick Diamond business association believes would follow) would also need to import most of their staff. So almost all the extra income would go to the newcomers. In all probability existing local residents would just experience more road congestion, more pressure on local infrastructure, more more pressure on health services and schools, as well as more noise, and fewer green fields.
Click here to view full story...
Global aviation anticipated to carry on expanding at 5% per year out to 2032 … and beyond
The world’s addiction to flying shows no signs of slowing, despite increasing concerns over the industry’s impact on climate change. New data from the Worldwatch Institute shows the number of people taking flights in 2012 hit 2,957 million, a 4.7% increase on 2011. That’s triple the number of people flying in 1986. Boeing predicts world passenger numbers and air cargo traffic will rise 5% annually until 2032. The“insatiable” desire for air travel is bad news for climate change, as growth in the sector is faster than fuel efficiency improvements - giving a large net increase in CO2 emissions each year. In 2012, aviation produced 689 million tonnes of CO2, or around 2% of the global total. A 2009 paper in the Atmospheric Environment journal calculated air travel was responsible for 4.9% of man-made climate change. As their affluence increases,people travel more and more. International flights are responsible for the majority of air miles travelled. In 2012, while only 39% of passengers were on international flights, they accounted for 62% of the overall distance travelled. The world's aircraft fleet is expected to grow to 36,500 carriers by 2032, says Airbus, or to more than 41,000, says rival Boeing.
Click here to view full story...
Luton Airport expansion plan should be called in, say three local MPs
Communities Secretary Eric Pickles has again been urged to call in the major expansion of Luton Airport. Harpenden MP Peter Lilley has repeated his plea for Mr Pickles to “objectively” consider the scheme, after Luton borough council controversially approved expansion of the airport, despite being its owner. On December 20, just 6 members of the council’s 11-strong development control committee turned up to a planning meeting where they agreed to nearly double passenger throughput to 18 million a year. Mr Lilley condemned the council’s decision to “sneak in the planning hearing just before Christmas” and said: “I have again written to the Secretary of State urging him to call in the planning application to ensure it receives proper consideration, which is seen to be objective. It is essential to make sure that any growth in throughput is made tolerable for those living near the airport and under the flight paths. There are concerns that concessions originally proposed by the operator have not been enshrined in the planning approval granted by Luton.” Stevenage MP Stephen McPartland and MP for North East Hertfordshire Oliver Heald, are also asking for the government to take the decision out of Luton Borough Council’s hands.
Click here to view full story...
Connie Hedegaard: Why bold climate action is in Europe’s economic interest
Connie writes that one of the major dilemmas facing political leaders across the world today is how to combine economic prosperity with bold climate action. It is obvious that climate policy-makers must anticipate the economic impacts of climate policies. Anything else would be irresponsible. Everybody agrees to this elementary reasoning. But, she says, how come it is not equally elementary to all that economic policy-makers must anticipate the climate impacts of their proposed economic policies? Global economic leaders are finally beginning to understand that, beyond the global economic crisis, the world is experiencing a climate crisis. And none can be resolved without addressing the other. In January the European Commission will propose a new climate and energy framework for 2030. Europe's ambition will be seen by many countries as a benchmark, both in terms of timing and ambition, and an important driver in securing ambition for the domestic preparations of other countries and, as a result, for the 2015 agreement in Paris. The summit of world leaders on climate change that UN Secretary-General Ban Ki-moon will host in September 2014 will be a crucial milestone on the road to Paris.
Click here to view full story...
Regional prefect signs orders on water & biodiversity – real threat work might start on Notre-Dame des Landes airport
Support continues to grow for the Nantes campaigners There are now over 200 support groups backing the campaigners fighting the proposed new airport at Notre-Dames-des-Landes outside Nantes. The campaign suffered a setback when the EU refused to insist the French authorities should carry out a full environmental assessment of the impact of the new airport. On 21st December the local prefecture finally signed the papers, on the law relating to water and biodiversity. There is now a real threat that the Notre-Dame des Landes airport could be built. However, the battle is far from over as the opponents will take legal action to get the papers annulled, and suspend construction, through proving the state is infringing part of the Water Act. Elected environmentalists are willing to break their alliance with the Socialists in regional council over the issue. They will leave the alliance if the airport goes ahead, and form a blocking minority politically. There will also be a mass mobilization across France. The next big demonstration is on 22nd February. The Nantes campaign, ACIPA, say they will block the building work. ACIPA say: "We will not let them! Work will not start!" They are anticipating a new wave of expulsions on the land earmarked for the airport, where there are a dozen legal occupants and up to 200 illegally occupants.
Click here to view full story...
HS2: Government ministers sat on critical report by DfT while promoting KPMG report alleging huge economic benefits
A key report by KPMG used by the Government to make the economic case for the HS2 high-speed rail line has been critically undermined by the DfT's own research, which suggests the study’s methods exaggerated the benefits of the project. The report has been repeatedly quoted by ministers — including George Osborne — to defend their £43 billion scheme. It said there would be a “£15 billion annual boost to the economy, with the North and Midlands gaining at least double the benefit of the South”.The figure was said to be the value of higher employment, better productivity and “gross value added” (GVA), increased production of goods and services, caused by the new line. But the DfT was sitting on another study, by transport experts, showing the KPMG report produced “implausibly high” estimates of the effect of high-speed rail projects on the economy. The second report said: “There is no evidence that the direction of causation claimed in the model —between an increase in rail connectivity and an increase in productivity, employment density and GVA — has been established.” (We have had that direction-of-causation problem with reports for the aviation industry). “Over the construction and the first 60 years of operation of HS2, it is likely that carbon savings … will be less than the carbon emissions, resulting largely from the construction phase,” the report says. Similar problems are likely with the economics of new runways.