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FLIGHTS of FANCY Getting Real on Aviation FLIGHTS OF FANCY Getting Real On Aviation Essex County Council submission to the Davies Commission Sept 2013 Contents Foreword 3 Executive Summary 5 Heathrow Airport 9 Stansted Airport 12 Thames Estuary Airport 17 Conclusion 19 Foreword IT IS TIME TO GET REAL ON AVIATION The need for more airport capacity in the long term – existing size), we do not believe it is viable to build a especially in the South East – is not in doubt. rival super hub airport elsewhere in the south east that would exist in close proximity and competition to it. But some of the solutions being put forward to solve this problem – such as shutting down Heathrow A dispersed approach is therefore a practical approach. and building a giant 4-5 runway super hub airport We are under no illusions that additional runway elsewhere, whether at Stansted or in the Thames capacity at airports across the south east – including Estuary – would be extremely costly, disruptive to Gatwick and Stansted – is likely to be inevitable in the the economy, to the environment and to the aviation long term. We believe an additional runway may be industry, and would take too long to deliver. required at Gatwick in the 2020s and not at Stansted until at least the 2030s. Evidence from major infrastructure projects in the UK and from across the world does not provide any In Stansted and Southend, Greater Essex has two reassurance that the cost will not go in any direction international airports which make a crucial economic other than upwards. contribution, providing thousands of jobs and moving people, goods and services around the world. Stansted The UK does not have the time or the money to waste has great potential to double its capacity within existing on unpractical or undeliverable schemes. There are permissions and by catering for non-hub traffic and simpler, more convenient, more practical and more opening up new long haul routes we believe it can affordable options that the Davies Commission become an airport of trade and commerce that is vital should prioritise. to the UK economy. The first is that a third runway at Heathrow should not The Commission has an important role to play in be ruled out as an option. It is clear to us that a third addressing a problem that has plagued successive runway at Heathrow is the most viable, affordable and governments for decades. I believe it is time to get practical option to improve UK aviation capacity. The real on aviation and focus on realistic, affordable and Commission – and the Government – needs to take a practical options that the UK can afford and deliver. pragmatic approach on this in the economic interests I am happy to commend this paper to the Commission. of the country. The second is that a dispersed hub approach is likely to be the most feasible. We do not consider it to be Cllr David Finch practical or desirable for Heathrow to be closed down Leader of Essex County Council and for a single, super hub airport to be built elsewhere in its place. If Heathrow is to remain open (even at its FLIGHTS OF FANCY Getting Real On Aviation Essex County Council submission to the Davies Commission Sept 2013 3 “it is time to get real on aviation and focus on realistic, affordable and practical options.” “The UK does not have the time or the money to waste on unpractical or undeliverable schemes.” #1 Executive Summary 1.1 Essex County Council welcomes the opportunity to comment on the options for long-term aviation capacity in the UK. 1.2 The argument that the UK needs more airport capacity is not in doubt but it is time that we get real about the options on the table. We believe the Davies Commission needs to focus on realistic, affordable and practical options for the future of UK plc. The UK does not have the time or the money to waste on unworkable schemes. 1.3 In summary, Essex County Council believes: a) The complete closure of Heathrow is not a realistic or desirable prospect. It would cause significant disruption and dislocation to the UK economy. Options that assume or depend on the complete closure of Heathrow are likely to be unpractical non-starters. b) We do not support a new super hub airport at Stansted or in the Thames Estuary. If Heathrow remains open, we believe that proposals that assume the establishment of a giant rival ‘super hub’ airport elsewhere in the south east would be unviable and unsustainable. c) We believe that proposals from the Mayor of London and others for a new super hub (at Stansted or in the Thames Estuary) are economically unviable and will take too long to deliver. These are not practical options for the future. d) A third runway at Heathrow is the most viable option in consolidating Heathrow’s position as the UK’s central airport. It is an affordable and practical option. We hope that the Davies Commission – and the Government – takes a pragmatic view about this option in the economic interests of the country. e) Stansted can help add capacity and new routes to the London and south east airport system within its existing permissions, particularly by catering for more non-hub air traffic. We support sensible growth at Stansted in the short to medium term and this includes growth from 17.5 million passengers per annum (mppa) up to 45 mppa by maximising use of its existing runway. We support Stansted’s owners’ ambitions to introduce greater destinations and long haul flights and we believe Stansted should be an important airport of trade and commerce as well as for short breaks and holidays. Sensible growth at Stansted can benefit the UK and the Essex economy. FLIGHTS OF FANCY Getting Real On Aviation Essex County Council submission to the Davies Commission Sept 2013 5 #1 Executive Summary f) Increasing routes and destinations is critical for the UK economy and it is important that the UK has excellent point-to-point connections. We believe this can be achieved through a dispersed hub model, as opposed to only by a single hub model. Much has been made about comparing London with Schipol but perhaps a better comparison would be with New York City, which does not have a genuine hub airport. We want business and people to come to the UK to stay and do business, rather than simply to pass through while changing flights. We believe the UK needs: i. An airport system that has the capacity to offer a wide range of destinations and routes, including to developing and fast growing international markets. ii. An approach to aviation taxation that does not make Britain expensive and uncompetitive relative to other countries. g) Essex County Council also supports the 5 principles set out by the owners of Stansted Airport (Manchester Airport Group) for making best use of existing capacity, specifically: i. Reforming the structure of Air Passenger Duty to incentivise the take up of spare capacity by airlines; ii. Improving surface access to airports with unused capacity, especially rail connections to Stansted, to increase their attractiveness; iii. Exploring reforms which would make better use of the scarce capacity at Heathrow and other London airports, particularly economic regulation and slot reform; iv. Promoting competition between airports wherever possible by removing economic regulation and championing consumer interests; and v. Further liberalising the UK’s bilaterals policy to open up capacity to overseas airlines. FLIGHTS OF FANCY Getting Real On Aviation Essex County Council submission to the Davies Commission Sept 2013 6 #1 Executive Summary h) While we do not believe the case for a second runway at Stansted exists at the present time, we do recognise that additional runway capacity at airports across the south east – including Gatwick and Stansted – will likely be inevitable in the long term. We believe an additional runway may be required at Gatwick in the 2020s and not at Stansted until at least the 2030s. i) If the Davies Commission and / or the Government were to recommend any additional runway capacity at Stansted in the short term then Essex County Council would expect to see a robust business case for this and would require assurances that the environmental impacts would be minimised and mitigated. We are also clear that Essex would need massive investments in road and rail infrastructure on the West Anglia mainline to manage such large increases in passengers travelling to and from the airport and across the county. The existing infrastructure and transport system is already sub-optimal. j) We would expect the Davies Commission to consult with Essex County Council and districts and communities in Essex if it is seriously considering any option that impacts on the people, communities and infrastructure of Essex and we would welcome the opportunity to understand the Commission’s thinking. FLIGHTS OF FANCY Getting Real On Aviation Essex County Council submission to the Davies Commission Sept 2013 7 “We do not support a new super hub airport at Stansted or in the Thames Estuary.” “A dispersed hub approach is likely to be the most feasible.” “The complete closure of Heathrow is not a realistic or desirable prospect.” #2 Heathrow Airport 2.1 Heathrow is the largest airport in the UK, the third largest in the world in terms of passenger numbers and is the second largest airport in the world in terms of international passenger movements.1 We believe it is best-placed to continue its status as the UK’s central hub airport. 2.2 Essex County Council believes that the Davies Commission needs to consider all options in the South East, including expansion at Heathrow Airport through building a third runway.
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