THE HEATHROW DEBATE - WHAT'S THE ANSWER?

We posted a news story on our LinkedIn page yesterday about business travellers wanting another runway at Heathrow Airport. Richard Charman, research manager at HRG, posted a reply. See below. Food for thought, isn't it? We'd love to hear what you think - @btshowlondon or Business Travel Show group on LinkedIn. 

If you look at the IoD's own member research - it shows a significant regional split on where expansion should be focused. Having read numerous submissions my gut feeling is that Gatwick may be given an additional runway, Manchester Airport will get an additional runway, Birmingham Airport will have a significantly expanded runway by the end of 2014, Boris Island or similar will be promoted as a long term alternative to Heathrow, by the Government, whilst expansion at a number of other airports will also be permitted. It is already happening at Llydd Airport.  Personally, I would like Heathrow Airport expanded to accommodate two more runways but, I do not see how the Government can get that through Parliament or the courts because of the environmental impact. The promotion of one additional runway might be acceptable - but some argue that is only an interim not, a long-term solution. The likely outcome of the Davis Commission exercise is an attempt to direct development to a number of airports around the country to try and encourage balanced airport expansion because this implies balanced economic development - such simplistic logic ignores failed attempts to get airlines to use Stansted which is currently a white elephant used many by low cost airlines. Such a scenario could do a great deal of harm to UK earnings from aviation and encourage expansion at airports outside the UK. We are already suffering significant political and economic damage as a result of the imposition of Air Passenger Duty which should be abolished or as a minimum reduced significantly.

By Richard Charman

DEAR PATRICK MCLOUGHLIN, PLEASE PUT PARTY POLITICS TO ONE SIDE FOR THE SAKE OF UK PLC

In the first cabinet reshuffle since the Coalition Government took power, anti-third runway Transport Secretary Justine Greening has been ousted and Patrick McLoughlin has taken her place. Not much is known about Mr McLoughlin transport-wise, apart from the fact he has a fear of flying and he represents the most landlocked constituency in the UK.

 

No doubt, airport expansion, and the issue of a third runway at Heathrow in particular, will be top of his agenda this morning. Speaking on behalf of the business travel industry – if I may – I urge Mr McLoughlin to use this opportunity to put party politics to one side, to not succumb to the NIMBYs (not in my backyards) who will fight against expansion at whichever airport affects them most, and to focus solely on what’s good for UK PLC.

As the Government continues to dither and decisions are delayed, cities like Amsterdam, Frankfurt and Paris – all with world-class, well-connected hubs – continue to attract global corporations and the UK continues to slide down the scale as a centre of global commerce. 

Our lack of airport capacity is also preventing us from introducing new routes to the BRIC countries, which is essential to fuel economic growth long term.

In my opinion, that means putting a plan in place to create a long term transport strategy that will support the UK as a centre for business and fuel its economy over the next 20-30 years. And in the short-medium term look to airports such as Gatwick, Luton and Stansted to ease the capacity issues at Heathrow that everyone is getting so blindsided by.

As event director of the Business Travel Show, I’d like to extend an invitation to Mr McLoughlin to address the business travel industry at our event in London next February where he will meet a very eager audience keen to question him about the issues affecting our business including airport expansion, APD, green taxes, and high speed rail and franchises.

David Chapple, event director Business Travel Show, david@businesstravelshow.com

HOW DID WE FORGET ABOUT GATWICK?

There has been pretty much one topic on everyone’s lips in the industry this week and that is the argument for a third runway at Heathrow Airport. Why? Because the UK government is due to unveil a consultation document on its new airports strategy in the next few weeks. Note: the consultation document isn’t about Heathrow and its third runway. In fact, expansion at Heathrow isn’t even included as one of the options on the table. And yet, it would appear, all roads (or should that be runways) keep leading back to Heathrow.

There’s no doubting that Heathrow is a problem that needs fixing. It’s currently operating at a perilous 99 per cent capacity. Some have suggested introducing mixed mode flying (ie using its two runways for inbound and outbound flights) to increase this capacity by 15 per cent and another 10 million passengers per year.

But, in my opinion, Heathrow is a bit of red herring in this whole debate. We need to stop talking about it and get back to the real issue: how is aviation going to grow over the next 20, 30 years and how are we going to build an infrastructure fit for purpose to continue supporting the growth of UK Plc?

In the short term, the answer is not Heathrow. Or Marsden. Or Boris Island. Let’s open our eyes and look to other airports in the South East, airports with capacity: Luton, Stansted, Gatwick.

Gatwick, for one, is currently operating at around 80 per cent capacity on its single runway. It’s projected to grow to 40 million passengers by 2020 with that one runway (it’s currently at just under 34 million). It’s connected to London for business better than any other airport, with train links to Victoria, London Bridge, City Link and Kings Cross. And it’s currently investing around £20 million per month into new passenger facilities as part of a six year £1.2 billion programme due for completion around 2014/2015. This investment and infrastructure make Gatwick a great option for business travellers.

But I’m not here to champion Gatwick over Heathrow, or Stansted over Boris Island. I’m here to champion common sense and to say let’s park Heathrow for now and start thinking long term for the good of this industry. 

Posted by David Chapple - talk to him on Twitter @btshowlondon or david@businesstravelshow.com