General News
Below are links to stories of general interest in relation to aviation and airports.
Eurozone crisis could plunge airline industry into $8bn loss, IATA warns
Tony Tyler, IATA’s director general and chief executive, says global airlines will plunge into combined losses of $8bn (£5.1bn) next year if the eurozone crisis turns into a full blown banking crisis and recession. On their most optimistic assumption, the losses might be $3.5 billion. That estimate is down from the $4.9bn IATA was forecasting just three months ago. European airlines, however, are expected to make a loss regardless of the outcome of the eurozone crisis
Click here to view full story...
US DOT official warns of damaging trade war between US and EU over EU ETS
The US Department of Transportation continues to push for American and other airlines to be excluded from the EU's Emissions Trading Scheme, which aviation joins on 1st January. They are trying to make out that this scheme is holding ICAO back and delaying their action (ICAO has never been remotely pro-active on this). The European Court of Justice will announce their decision on the case against the ETS on 21st December. Realistically the airlines realise that at this late date, the scheme cannot and will not be altered, though they hope for change before early 2013.
Click here to view full story...
BA says it will cut back on hiring new staff due to APD rise
BA says it will take on only 400 people, not 800, next year. It says this is because of the rise in APD. It does not mention the effects of the economic recession in reducing demand for air travel. Willie Walsh claims the damage done to the UK economy (from the tax rising from £12 to £13 for flight of less than 2,000 miles, or a rise from £60 to £65 for one up to 4,000 miles) will be greater than the tax raised. This ignores, as the aviation industry always does, the tourism deficit caused by more Brits flying out of the UK to spend money abroad, than tourists flying in.
Click here to view full story...
Scottish airports disappointed by decision not to devolve APD
Because the government agreed to cut APD rates in Northern Ireland, Scottish airport operators are dismayed that contol of APD had not been devolved to the Scottish government. Scottish aviation says if APD were devolved they could provide the means to incentivise airlines to provide new direct international connections to Scotland. The UK Treasury said it had not ruled out devolving APD to Scotland and Wales in the future.
Click here to view full story...
AirportWatch welcomes Air Passenger Duty increase
In these difficult economic times it is absolutely right that the aviation industry and its customers join the rest of society in making their fair contribution towards the country’s finances. Aviation remains greatly under-taxed compared with most other sectors of the economy. Aviation still pays no fuel duty and no VAT and even with this APD increase the industry still lbenefits to the extent of around £8.5 billion per annum.
Click here to view full story...
Government retains APD distance and class bands
Air Passenger Duty rate banding for both distances and seat class will not be changed, the government has said. The 4 distance bands will be retained. There will be no reduced APD rate for premium economy. The government said any banding system would produce some anomalies, and the 4 band system produces fewer than a 2 band system. APD will increase 10% from 1 April 2012 as announced in the Budget last week and business jets of 5.7 tonnes or more will be included from 1 April 2013.
Click here to view full story...
“Better European Airports” package launched by European Commission
An important ‘airport package’ was released by the European Commission on 1st December. It covers slots, speeding up ground-handling at the airports and noise (where it is proposing the Commission has a greater role). The reason behind is to allow airports to make more efficient use of their existing capacity in order to allow more planes to use them. The report says that Europe’s airports are facing a capacity crunch, and air traffic in Europe will nearly double by 2030. Yet Europe will not be in a position to meet a large part of this demand due to a shortage of airport capacity.
Click here to view full story...
New report shows Family holidays could boost economy and quality of life
A report by the All Party Parliamentary group on social tourism wants there to be more money spent on encouraging families to take holidays together. Though much of the backing comes from airlines and travel firms like Thomson who want families to travel abroad, there is much support for badly off families to use spare holiday accommodation within the UK for inexpensive holidays, thus also boosting UK tourism.
Click here to view full story...
Chancellor’s autumn statement – he regards environment rules as a burden on the economy
The Chancellor's autumn statement slammed green policies as a "burden" and a "ridiculous cost" to British businesses, in a fillip to the right wing of his party. He told parliament: "I am worried about the combined impact of the green policies adopted not just in Britain, but also by the European Union …" RSPB, WWF, FOE and CPRE all expressed their grave disappointment of this abandonnment of environmental regulation and the environmental recklessnes and lack of vision of throwing billions of pounds at roads and dirty energy that will only increase our dependency on gas, coal and oil instead of boosting greener alternatives.
Click here to view full story...
Autumn statement by Chancellor. U-turn on Gatwick and Stansted airports and consideration of estuary airport. But APD will rise in April
In this autumn statement, George Osborne - in a desperate attempt to boost the economy - has turned his back on environmental safeguards and the green economy, to encourage high carbon infrastructure. He has said he wants to improve, performance and resilience of airports. He says the Government is committed to maintaining the status of the UK as an international hub for aviation, with excellent connectivity to both developed as well as emerging markets. He said "And we will explore all the options for maintaining the UK’s aviation hub status, with the exception of a third runway at Heathrow." So that means runways at Gatwick and Stansted are to be considered again, as well as looking at an estuary hub. However, on the plus side, even with all the lobbying by the aviation industry for APD to be reduced or frozen, the rates will rise in April 2012 in line with inflation. [APD announcement on 6th December for a 8% approx rise from 1st April 2012] .