General News
Below are links to stories of general interest in relation to aviation and airports.
Conservative MPs urge rethink on Heathrow 3rd runway and improved links with emerging economies
A group of 30 Conservative MPs, calling themselves the "Free Enterprise Group" have produced a report, which attempts to make the case for a 3rd Heathrow runway, and for new runways at Gatwick or Stansted. It presents no new research, and ignores the environmental impacts of their proposals, giving no thought to climate change, and very vague suggestions of payments of up to £40,000 per household near Heathrow as compensation. It makes out that Heathrow cannot produce enough flights to China. In practice, there were 606,800 passengers travelling between China and Heathrow in 2010, with another 1,386,770 travelling to Hong Kong. Heathrow flew 954,000 people to Miami last year (2011), compared to 311,000 to Beijing and 352,000 to Shanghai. It seems beach holidays are a greater priority to airlines than Chinese business.
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World Tourism Organisation says tourism accounts for about half of all global air passengers
UN World Tourism Organisation says tourism's contribution to global climate change is about 5%. If tourism were a country, it would be the 5th largest emitter worldwide, ahead of Germany (6th) and Canada (7th). About 75% of total tourism carbon emissions are from travel. Of this air travel accounts for 40% of tourism's contribution of CO2. Around half of air passengers globally are tourists. The number of air travellers is projected to double from 2007 to 2025 to more than 9 billion travellers a year. The industry would need to cut its carbon intensity in half by 2025 just to keep total emissions at 2007 levels. Globally, the number of international tourists is thought likely to reach one billion during 2012 - so perhaps half a billion tourists in Europe.
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John Stewart on Cameron’s change of heart about Boris and his airport
John - Chair of AirportWatch - writes that the high-profile way David Cameron chose to make the announcement that the government will look at the merits of a new airport in the Thames Estuary suggests that it has as much to do with political calculation as aviation policy. He will be hoping that the London mayor’s persistent championing of the proposal will garner him votes from West London in the forthcoming mayoral elections. His announcement also serves the political purpose of reassuring business, which for years has been calling for new infrastructure. The prime minister is aware he is creating a mirage of economic activity. He also knows that the estuary airport may never happen and has staged a drama for political effect.
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ICAO chief promises global emissions proposal by end 2012
Emissions from airlines, currently about 2 percent of the world total, may surge as the number of passenger flights almost doubles to 5 billion a year by 2020, according to the group’s own estimates.
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Flybe shares slump 20% on revenue warning due to declining demand
Flybe has warned that weak UK sales are causing it problems. Sales in the three months to December 2011 were down 8% on a year earlier. Flybe said conditions in the UK domestic air travel market had continued to deteriorate and this trend would continue. There has been a general decline in demand for air travel during the economic downturn. Flybe said these conditions "will force" rationalisation of the European short-haul airline market. Shares in the airline have fallen more than 80% since the start of 2011. UK sales make up about 70% of Flybe’s revenue, but the airline is looking to expand into Europe.
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BAA believes that by 2032 HS2 will cut Heathrow domestic flights. Numbers have been falling over the past 10 years anyway
BAA Heathrow backs HS2, and believes that once the spur to Heathrow is built by 2032 it will boost the airport. It does not see a great benefit from the first phase of HS2 to Birmingham only, but the benefit starts once the Y shaped links to Leeds and Manchester are built. BAA estimates that there might be some 22% fewer domestic flights from Heathrow after 2032. (There were around 45 - 46,000 domestic flights in 2010, so 9 - 10,000 might be cut). However, unless the ETS deterred a switch from domestic flights to long haul, it is likely that the slots previously used for short flights would be used for long haul, so greatly increasing overall carbon emissions. The GMB continues to press for a third Heathrow runway.
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Manchester Airports Group could float to fund Stansted bid
Manchester Airports Group is considering a partial floatation as it looks to raise funds for the acquisition of Stansted or Edinburgh airport. They might form a joint venture with others - including Greater Manchester Pension Fund and Canadian infrastructure investor Borealis - to buy another airport. MAG is also trying to build an Airport City. They regard Stansted or Edinburgh as adding quality to the group. MAG earlier made a bid for Gatwick, but withdrew the bid. Manchester city council has a 55% stake in MAG, while each of the 9 other Greater Manchester local authorities own 5% each. First-round bids for Edinburgh airport are due in by mid-February. Analysts estimate it could fetch up to £600m.
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Air France-KLM to restructure short and medium-haul network
Air France-KLM (the biggest carrier in Europe based on annual revenue) will cut its short and medium-haul fleet and freeze the pay of its French employees for the next 2 years as part of a 3-year plan to return to profitability and turn the business around by 2014. It wants to cut its net debt from the current €4.5 billion to €2.5 billion over this period. One of its central aims is to get its short and medium-haul business back to break-even within three years – this part of the company lost €700 milion last year – through a major restructure. It is planning to shrink its fleet by deferring the arrival of mid-haul aircraft and not taking up options on aircraft orders.
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Times Leader pushing for Heathrow expansion
The Times writes - heavily influenced by the aviation industry lobby - that the only hope for the UK economy is to expand Heathrow, build a third runway , and to hell with any adverse effects on anyone. The Leader writer appears not to be aware of some of the basic facts and has swallowed entirely the mantra of the aviation industry that aviation is the driving force of all economic activity - which is not true. This Leader continues the long campaign to put pressure on the government to grow Heathrow and produce an aviation policy that greatly expands UK aviation capacity.
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Ryanair adds 25p tax levy to fares per passenger per flight to cover ETS
Ryanair is to charge all its passengers 25p per flight from 17th January - in theory due to the inclusion of aviation in the EU Emissions Trading Scheme. Ryanair in practice does not need to pay for carbon until January 2013. Ryanair is calling the ETS an "eco-looney tax". They are complaining strenuously about this miniscule charge, even though they think nothing of slapping large charges on to everything else they can. Many other airlines are also starting to charge. For example Delta with $3 for one way. Brussels Airlines €3 - 10. AirAsia €5 one way. American $3 one way. Qantas probably $5. British Airways - no rise yet.