General News
Below are links to stories of general interest in relation to aviation and airports.
Surprise, surprise. Air travellers would like to pay less tax (wouldn’t we all?)
In a particularly silly story, as part of the Telegraph's continuing campaign against Air Passenger Duty, they misrepresent a survey done by the Airport Operators Association. The AOA has done a survey of travellers, (but the survey is not made public, so the nature of the questions cannot be seen) and this comes out with the un-surprising result that (shock, horror) 80% of those questioned would like to pay less tax. Nobody likes paying tax, and if any sample of payers of a particular tax were questioned about whether they would like to pay less, they would agree that they would. The Telegraph headling "Eight in ten Britons back air tax cut" is especially inaccurate, as in any one year, it is likely that only about 47% of Brits actually get on a plane (see below). So a survey of air passengers flying this year is only perhaps at best representative of half the UK population. That 80% is more like 40% of the total. And who is surprised if people want to get something for less, and pay less tax?
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Government to consider? accept? support? back? implement? Davies Commission findings?
At the announcement of the Davies Commission, by Patrick McLoughlin on 7th September, he said - of the Commission: "A decision on whether to support any of the recommendations contained in the final report will be taken by the next Government." (see link). The Guardian is now reporting that, speaking at the Airport Operators Association, Simon Burns (Minister of State for Transport) said the Conservatives would back and implement the findings of the commission led by Sir Howard Davies when it reports in 2015. Patrick McLoughlin said of it on around 7th October: "I hope all main parties will back his findings." link The Guardian is saying that, before this AOA meeting, McLoughlin had only "pledged to consider" its recommendations The Guardian reports that the aviation industry has jumped on this comment by Simon Burns. The terms of reference and membership of the Davies Commission are yet to be confirmed, almost two months after it was first announced. Burns said there would be more details within weeks.
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European airports, like those in UK, make large part of their income as shopping centres
LInvestors in airports are being drawn to the profit being made by the real estate and retail income they generate. Among European airports, Aeroports de Paris derived 39% of its revenue from real estate and retail in 2011; Zurich took in 50.3%; and Danish airport operator Koebenhavns Lufthavne A/S collected 33.6%. At TAV (Turkey), the share was 33%, and at Vienna it was 19%. Airports generally get the majority of their retail revenue after passengers check in and go through security. Goldman Sachs lists retail revenue as a major factor in recommending European airports to invest in. Two weeks ago, Fraport opened Pier-A-Plus, a terminal extension at Frankfurt, allowing Germany's biggest hub to serve up to 6 million passengers a year and adding 50% to the airport's retail space. According to ACI, air passenger numbers in Europe are up 2.3% this year compared to 2011, but Eurocontrol forecast that annual traffic growth will average 1.9% over the next 7 years in Europe, due to high oil prices and a weaker economic outlook.
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Will the Treasury exclude shipping and aviation from carbon targets?
A coalition of green groups [AirportWatch] has condemned the Treasury and DfTs move to remove international aviation and shipping from the UK's 2050 carbon targets. DfT officials told an Energy and Climate Change select committee hearing last week that the UK could save money in the future for other sectors of the economy if aviation and shipping were to remain outside of the UK's 5th carbon budget, due for consideration in 2015. The DfT did note that this would sacrifice the environmental benefit of including them in the budget, but is now thought to be working with the Treasury to highlight potential savings arising from exempting the two sectors, which are likely to account for around a quarter of the UK's total emissions by 2050. Green groups say that leaving aviation and shipping out of the UK carbon targets would put at risk the UK's target of delivering 80% emissions cuts across the economy by 2050. Instead of the 160 million tonnes of CO2 emissions the UK could emit by 2050 and keep within its goal, the country would be pumping out around 200 million tonnes should shipping and aviation be excluded.
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Latest clutch of articles speculating on, or lobbying for, one or other airport option …
Though there is no news yet on the terms of reference or the composition of the Davies Commission on future airport capacity, that does not stop the papers and the aviation industry from continuing to put forth their pennyworth on the matter. Steve Ridgway, in the Telegraph, says expanding Heathrow is the only way. Digby Jones says (with various inaccuracies) that we have to have a 3rd Heathrow runway and that "we can move Heathrow to 24/7 flying. That would be a temporary fix at best and a cause of discomfort for residents living under the flight path". A cause of discomfort? And the Independent on Sunday has a stab at assessing the chances (only taking some of the issues into account) for Heathrow, Gatwick, Stansted, Thames Estuary or a 4 runway hub airport somewhere in Oxfordshire by "a business consortium, now known to include British Airways and BAA veterans".
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As many as 8,000 in Frankfurt airport protest to mark 1st anniversary of opening of 4th runway
On Sunday, a year after the opening of the 4th runway at Frankfurt airport, thousands protested peacefully against the increasing noise in the region. There may have been as many as 8,000 people there. On a bright autumn day they assembled by the fence next to the runway and showed their anger partly by making loud music. They are demanding planned construction of a new third airport terminal to be ceased. They are also demanding the closure of the 4th runway, and an extension of the ban on night flights from 22:00 and 06:00 in the morning. The government insist that the expansion of the airport provides opportunities for economic growth. However, they realise they have a real problem with aircraft noise and the extent of persistent citizen opposition. In the past week,three new measures had been adopted on noise, including an increase in the angle of approach and an increase in altitude. The protesters to not intend to give up their opposition.
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Northern Ireland Finance Minister says cutting APD on short haul flights would cost NI too much
Northern Ireland Finance Minister, Sammy Wilson, has said he would like to see APD on short-haul flights cut, but said it might cost NI too much. The tax currently adds £13 to a flight in Northern Ireland, compared to €3 in the Republic. While legislation to cut APD on long-haul flights is going through the assembly, NI does not have the power to cut it on short-haul flights. Getting this power would affect the amount it gets in the block grant that Northern Ireland gets from the Treasury in London - of some between £60-90m a year. As the devolved administration does not have responsibility for tax-gathering, when tax is gathered in Northern Ireland, it is collected by HM Revenue and Customs and it goes directly to the Treasury in London. Sammy Wilson said "Even if we did have the powers we would have to ask the question whether or not the £60m this would cost us, rising to £90m, would be better spent on other developments."
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Heathrow finds space for new flights to Mexico – and Alicante
The Telegraph writes that it has taken Aeromexico four years to get some slots at Heathrow, and makes out that this is because Heathrow is full etc etc. There are already 4 flights per week to Mexico, and these new flights will bring the total number to 7 per week. The Telegraph compares this to Paris with 14 and Madrid with 19. In reality, due to the BA link with Iberia, there are relatively few flights from Heathrow to south America, as they go via Madrid. Looking at Heathrow's website, and its new destinations, one could be forgiven for thinking the airport is only looking to attract tourists, as all its publicity about new destinations is about their tourism potential, and delightful things to go and see and experience. Not one word about their business potential, or the chances for business to drive UK exports. And Heathrow has found room for as many new flights per week to Alicante as there will be to Mexico. Driving UK exports via Alicante ? Really?
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Airport capacity crisis? What crisis? AEF short briefing on future demand and capacity
The Aviation Environment Federation www.aef.org.uk has produced a short briefing on future demand for air travel and capacity. It shows how the government's forecasts for future air passenger growth have steadily fallen from 2003, through 2007, and 2009 and 2011. It is anticipated that new forecasts will be produced by the DfT shortly, again showing a reduction. Even the latest forecasts are probably still too high because they assume a resumption in economic growth at around 2% pa or above and continuing indefinitely, which is very uncertain; also no increase in oil prices (despite evidence of increasing demand and increasingly difficult and expensive approaches to extraction), and a continuation of aviation’s tax exemptions (including no fuel tax and no VAT). Business travel is only perhaps 21% of UK air passengers.
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A sea of protest against airport expansion across Europe as a new breed of campaigner emerges
Hacan has produced a new report outlining the huge protests against airport expansion that are taking place across Europe. This coming Sunday thousands of people are expected to converge on Frankfurt Airport to mark the first anniversary of the opening of its controversial 4th runway. Every Monday evening, since it was opened in October 2011 by the German Chancellor Angela Merkel, up to 5,000 residents have occupied the airport’s terminal in protest against the impact the new runway has had on their lives. Many thousands more are expected at Sunday’s protest. In the last 2 years plans for a 3rd runway at both Munich Airport and at Heathrow, as well as new airports in the Italian towns of Siena and Viterbo, have had to be dropped in the face of public protest. The report found that a new kind of airport protester is emerging across Europe, not only concerned with local impacts such as noise, but challenging the economic need for new runways, and aviation's carbon emissions.
