General News
Below are links to stories of general interest in relation to aviation and airports.
Iberia to cut 4,500 jobs (around 22%) under IAG restructuring plan
IAG has announced 4,500 job cuts (out of a total staff of around 20,000) at Iberia as part of a widely anticipated restructuring, to stem its cash losses. Iberia is cutting its 156-strong fleet by 25 aircraft, and reducing 15% of its network capacity, focusing on the most profitable routes.It hopes to stem its cash loss by mid-2013. IAG also revealed a 30% drop in pre-tax quarterly profits to €221m - due to losses at Iberia and also at recently purchased BMI. IAG now expects to make an overall operating loss of €120m this year - excluding any costs associated with the Iberia restructuring - with further losses likely in the remaining 3 months due to the impact of storm Sandy. Iberia has been suffering record losses, and IAG warned 3 months ago that job cuts were likely to come, and it is "unprofitable in all its markets." "Unless we take radical action to introduce permanent structural change, the future for the airline is bleak." The 4,500 job losses are not as high as the 7,000 figure that reportedly had been expected by Iberia's unions. IAG also plans to buy Spanish budget airline, Vueling,
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Responses from a range of organisations to the DfT’s Draft Aviation Policy Framework
The DfT recently consulted on the future aviation policy for the UK. This is he Aviation Policy Framework. The DfT said, of the consultation: "The Government’s primary objective is to achieve long-term economic growth, and the DfT is unambiguous in its view that the aviation sector is a major contributor to the economy. The Draft Aviation Policy framework document sets out the Government's overall objectives for aviation and the policies by which it hopes to achieve those objectives. The DfT supports the growth of UK aviation, though it conceded this should be within a "framework which maintains a balance between the benefits of aviation and its costs, particularly climate change and noise." AirportWatch has gathered together a number of consultation responses from a range of organisations, AirportWatch members and others.
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ICAO Council meeting on 9th November is perhaps the last chance to get meaningful global action on aviation CO2
The ICAO meeting on 9th November is their last chance to see meaningful action on controlling CO2 emissions from international aviation this decade. ICAO has been under particular pressure to act ever since its 2004 decision not to develop a global measure to curb aviation greenhouse gases opened the way for the EU to move regionally by including aviation in its ETS. Opponents of the ETS say a global solution through ICAO is needed, but the USA and others have repeatedly blocked all possible options. A year ago the ICAO Secretary General pushed publicly for ICAO to agree a proposal for global action by March 2013. That deadline won’t be met but there is still a chance over the next 3 months that ICAO’s Council can finalise a proposal in March 2013 to be approved at its triennial meeting in September 2013. However, to achieve this, ICAO’s Council needs to agree this week on a much accelerated work plan and resolve the many pending political questions which prevent substantive progress. President Obama’s re-election presents the US with a real opportunity to lead.
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Tim Yeo, Chairman of the Energy and Climate Change Committee, warns Treasury and DfT on excluding aviation from Climate Change Act
The Energy and Climate Change select committee is recommending inclusion of aviation (and shipping) emissions in the UK Climate Change Act which the Government has to decide on by end of December. The Chairman, Tim Yeo, has sent letters to the key departments who will be making the decision, two of which (Treasury and DfT) are opposing inclusion. Tim Yeo has written to Sajid Javid at the Treasury, Patrick McLoughlin at the DfT and to Greg Barker at DECC. He sets out clearly that the advice of the Committee on Climate Change is very clear on this issue: if the UK is to make our fair share of effort towards a global 2°C climate objective, annual UK greenhouse gas emissions - including international aviation and shipping emissions - need to fall to around 160 MtC02e by 2050. If international aviation and shipping are excluded from the accounts, an 80% cut would allow other sectors to emit 160 MtC02e, with aviation and shipping emissions occurring in addition to this. This would lead to total emissions of around 200 MtC02e, which is not consistent with meeting a global 2°C climate objective.'
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Comments on the launch of the Airports Commission by SSE, FoE, and WWF
Comments on the news of the membership and terms of reference of the Airports Commission from Stop Stansted Expansion, from Friends of the Earth UK and WWF UK.
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Sir Howard Davies suggests payouts might be given to people under flightpaths
The Standard reports that Sir Howard Davies suggested, at the launch of the Airports Commission, that cash compensation could be paid to west London residents if a 3rd Heathrow runway is built. He would look at whether financial payments should be given to people under the flightpaths if Heathrow, Gatwick or Stansted expansion took place. He said: “There are examples in other countries of different kinds of compensation arrangements which have been used, and that is certainly something we are going to look at.” and “I am conscious that allowing a lot of options to run does create the risk of planning blight ... and I don’t want to alarm people who have no need to be alarmed.” He also said the 2013 interim report by the Commission will be much more significant than previously expected and narrow down the rival options to a shortlist of “realistic” schemes, ending the anxiety of people living near more marginal sites. The 2013 interim report will also make recommendations on immediate ways to boost capacity in the south east, possibly including mixed-mode operation at Heathrow or night flights.
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Boris accuses government of “utter inertia” in not having the airports decision before 2015
Boris is accusing the Government of "utter inertia" on airport expansion policy . He says waiting till 2015 for the Commission's report would be "toxic and disastrous" for the next election. The Government is facing growing pressure for major infrastructure projects to help shore up the floundering economy. With no particular evidence to back their claims, some business leaders say more airport capacity is crucial to boosting trade and routes to developing markets. Boris argues that as China is building lots of new airports, we should build one too. (No particular logic in that, as the case of China is utterly different to ours.) Boris says the Airports Commission needs to report more quickly, well before summer 2015. Sir Howard Davies has said his Commission is not to kick the tricky question "into the long grass" for political reasons, and that its report will be "a really expert piece of work" and "In order to build enough political consensus around the eventual solution, we will need to show that we have done in-depth analysis of the other options. At the moment, consensus is what is lacking."
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Cautious welcome from HACAN for Airports Commission
John Stewart, Chair of HACAN and of AirportWatch, attended the launch meeting today of the Aviation Commission, chaired by Sir Howard Davies. Sir Howard said the interim report (to be produced some time before the end of 2013 - date not known) will suggest short-term measures to assist capacity as well as outline the more “plausible options” to be taken forward in the longer term. The final paper (to be published by "summer 2015" which means after the election in May) will work up these options in some considerable detail. He stressed, though, that the final decision will be down to the government of the day. In January 2013 the Commission will publish a paper assessing future demand for aviation. That will be followed during 2013 by further papers including ones on climate change and the economic benefits of aviation. These will be put onto the Commission's website, and be open for public comment. The Commission is not just to select airports where expansion should take place.
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Legalized slot trading comes a step closer in Europe
EU transport ministers have agreed a general approach on proposed changes to the 1993 slot allocation rules that could make it legal for airlines to buy and sell slots. Proposals for freeing up the slot allocation market have been under discussion since the 1993 regulation was implemented. However, EU legislators have remained wary of throwing the doors open to either primary or secondary trading. Primary trading is defined and regulated by an authority; secondary trading involves a direct exchange between airlines. The EU has traditionally insisted that secondary transfers should not involve monetary compensation, but has consistently turned a blind eye to such activities. In the UK, secondary trading is entrenched at Heathrow, one of the region’s most capacity constrained airports, and has created a thriving gray market.
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Airports Commission under Sir Howard Davies. Membership and terms of reference announced.
The government has today announced the full membership and terms of reference of the Airports Commission, to be chaired by Sir Howard Davies, and to "identify and recommend to Government options for maintaining the UK’s status as a global aviation hub." The government says it has identified individuals with a range of skills, backgrounds and experience to sit on the committee. The Commission also intends to appoint a panel of expert advisors. Members are: Sir John Armitt, former Chairman of the Olympic Delivery Authority; Professor Ricky Burdett (LSE); Vivienne Cox (was at BP Alternative Energy); Professor Dame Julia King (a member of the CCC); Geoff Muirhead CBE (former CEO of Manchester Airports Group). The terms of reference are that it will "The Commission will examine the scale and timing of any requirement for additional capacity to maintain the UK’s position as Europe’s most important aviation hub; and it will identify and evaluate how any need for additional capacity should be met in the short, medium and long term." And it should "should engage openly with interested parties and members of the public," etc