General News
Below are links to stories of general interest in relation to aviation and airports.
Belfast City Residents meet Environment Minister to discuss City Airport
The Northern Ireland Environment Minister has told local residents he has yet to make a final decision on the shape of his forthcoming inquiry into modifying the noise regulations governing George Best Belfast City Airport. He is awaiting legal advice. The inquiry which would investigate how the planning agreement between the Department of the Environment and the airport could be altered. The aim of the agreement is to provide protection for residents against undue levels of noise pollution from planes. Belfast City Airport Watch asked for assurances that the Minister would, in the meantime, enforce two crucial clauses in the planning agreement – relating to late flights and the number of seats offered for sale by the airport.
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Ditch HS2 rail link at eleventh hour – MPs
10 backbenchers say the government should, instead of HS2, develop a new "comprehensive" transport strategy which concentrates on better connections between road, rail and air. Justine Greening is expected to give the final go-ahead within weeks to the current planned route from London to Birmingham. There will be a revolt by MPs with affected constituencies if it is approved. Labour are pushing for an alternative route via Heathrow. but government sources said this had been rejected.
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Draft Civil Aviation Bill published putting passengers first and largely ignoring environmental concerns
Transport secretary Justine Greening has published a draft version of the new Civil Aviation Bill, which is expected to be introduced by parliament early next year. She said the DfT’s new airports legislation was centred around the experience of the passenger. “This Bill couples our commitment to make our airports better rather than bigger with the Government's wider agenda on better regulation". There is almost nothing on environmental impacts of airports or aviation, with the CAA's responsibilities on noise, emissions etc reduced - it just has to publish environmental information. “It also complements our ongoing work to produce a sustainable policy framework for aviation, a draft of which will be published next spring.”
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Industry urged to sign e-petition against APD rise
The air travel industry is desperate to influence the Chancellor on Air Passenger Duty, before his autumn statement on 29th November. They have created a petition and want 100,000 of the staff who work in the industry to sign it. They are arguing that APD is damaging European countries, as we Brits are now deterred from visiting them. Whether a £12 charge per person per holiday is enough to stop us visiting Europe, when a hotel for the night is at least £40 each, is hard to believe.
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Thomas Cook shares collapse as financial troubles unfold
Europe's second-biggest travel firm after rival TUI Travel has suffered a disastrous year, and is looking to borrow around £100m to tide it over during December, when trading is traditionally quiet, and give it sufficient headroom to be in no danger of breaching banking covenants. The group has suffered from the impact of the Arab spring, which has hit bookings to Tunisia and Egypt. Some analysts question the long-term survival of the travel company. Travel agency chains might soon join bookshops, record shops and bank branches as yet another high street victim of the internet and the recession.
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Bitter airline rivals fly the same flag to fight tax rise
The Independent says that airlines expect a 25% increase in Air Passenger Duty, when the Chancellor makes his autumn budget statement at the end of November. In the last budget the rate of APD stayed the same, but with the proviso it would rise by above inflation in 2012. Long-haul passengers face far greater rises. The tax take is necessary for the UK economy, as aviation pays no VAT and no fuel duty.
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AirportWatch says airlines must pay their fair share of the fuel tax burden
In a letter to the Chancellor in advance of the Pre Budget Report AirportWatch has pointed out that those who travel by air have it easy compared to those who travel by car. Motorists pay 58p a litre duty on their fuel. Motorists pay a further 22p VAT on their fuel. Motorists pay 20% VAT to have their car serviced. Airlines pay NONE of these. Motorists pay 20% VAT to buy their car. Airlines pay no tax on new aircraft. APD would need to be quadrupled to compensate for the fuel duty and VAT exemptions enjoyed by the aviation industry. In 2010/11 the exemption from fuel tax and VAT was worth more than £11 billion to the airlines.
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Four airlines complain to Chancellor that they want APD scrapped
EasyJet, Ryanair, IAG and Virgin Atlantic have written to the Chancellor to complain, yet again (and as APD will be reviewed in the Chancellor’s autumn statement next week) that they want APD cut. They are trying to make out that passenger numbers have fallen due to APD, rather than the economic recession. The “hard working family” argument is trotted out again (though most flights are taken by the rich. They, as usual, ignore the tourism deficit and the inconvenient fact that they pay no duty on fuel and no VAT on anything.
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Easyjet profits from business travel – now 9 million business passengers per year
A rise in the number of its business and European travellers helped Easyjet report increased profits for 2011. Its pre-tax profit was £248m for the year to 30 September, led by a 11.8% increase in passenger numbers, with 1 million more people using the airline for business travel. Business passengers now account for over 9 million annually. EasyJet paid £100m more in fuel costs during the year, but said it managed to offset this through efficiency savings.
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BA’s Airmiles scheme reborn as Avios. No more free flights. Travellers must pay APD etc
The Airmiles reward scheme is being relaunched and customers face having to pay taxes and charges. The scheme operated by BA and Iberia (owned by IAG) can no longer afford to give free flights on Airmiles points, as the airlines would have to pay the Air Passenger Duty. So now the frequent fliers have to pay their own APD, fees and other charges, which could amount to around £30 to European destinations, £300 to New York and £500 to Australia.