AOA URGES BUDGET SUPPORT for UK AVIATION and Warns That the Survival of UK Airports Is at Stake
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THE AIRPORT OPERATORTHE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION AOA URGES BUDGET SUPPORT FOR UK AVIATION and warns that the survival of UK airports is at stake Features LEEDS BRADFORD SOUTHAMPTON AIRPORT Plans for a new £150m terminal tells local council ts future approved in principle depends on a runway extension EIGHT ENGLISH AIRPORTS HOPES RISE FOR SPRING 2021 bid for freeport status Stansted expansion 2 THE AOA IS PLEASED TO WORK WITH ITS CORPORATE PARTNERS, GOLD AND SILVER MEMBERS Corporate Partners Gold Members Silver Members WWW.AOA.ORG.UK 3 KAREN DEE Introduction to The Airport Operator THE AIRPORT All of these moves amount to a Welcome to heartening vote of confidence OPERATOR from the owners of airports that THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION this edition of we will recover and be a vibrant, successful sector again. But, while AIRPORT OPERATORS ASSOCIATION The Airport that is really good news for the future, it shouldn’t distract us from The Baroness Ruby Operator the desperate situation that many McGregor-Smith CBE airports find themselves in now after Chair which tells the Government has, in effect, forced Karen Dee the story of them to close down their passenger Chief Executive operations. Henk van Klaveren how UK airports are fighting Head of Public Affairs & PR The Office of National Statistics to survive the worst crisis recently confirmed that air travel has Christopher Snelling that they have ever seen, but suffered more from the pandemic Policy Director than any other sector. The UK Rupinder Pamme also points to some optimism Government’s statement that Policy Manager international travel restrictions will Patricia Page about the future. not ease before 17 May means that Executive Assistant We asked a diverse group of airports we will also be the worst-hit sector & Office Manager to tell us how this year like no other this year. It is against this grim has been for them and they paint a Richard Atkin background that we have called on vivid picture of the action they took Finance Executive the UK and devolved governments to save their businesses and to start to set out sector-specific support to Tania Roca to prepare for the moment when help ensure there are viable airports Operations, Safety we can all fly again. In this edition to be able to restart. In this issue you & Commercial Director you can read the stories of chief can read about the Airport Recovery Oli Melzack executives at Bristol, Cornwall Airport Plan that we have submitted to Public Affairs Manager Newquay, Doncaster Sheffield and Whitehall in our bid to secure urgent Gibraltar. support. We will find out whether AIRPORT OPERATORS ASSOCIATION As well as the view from airports, the Treasury has been listening on 3 3 Birdcage Walk we also sought the perspectives March when Chancellor, Rishi Sunak, London SW1H 9JJ of our airline colleagues, of the reveals his Budget. United Kingdom wider business community and I hope that Ministers and officials T: +44 (0)20 7799 3171 of the regulator and you can read will also understand that it is not just E: [email protected] perceptive contributions in this issue W: www.aoa.org.uk financial support that we seek, vital from IATA, the CBI and the CAA. as that is. Time and again in this crisis Despite the tremendous difficulties we have seen rapid and unexpected changes in Government policy for our Michael Burrell that all airports are currently sector announced with no warning or Editor experiencing, it is also striking to see how many of them continue to press consultation. ahead with plans for growth and Now we need a clear framework for investment in the medium and long- recovery from Government that will THE AIRPORT OPERATOR term. enable us to plan ahead. Ministers MAGAZINE IS PRODUCED BY It was a cheering moment for our can’t just press a button and say now sector earlier this month when Leeds ‘off you go’; we won’t have the staff Bradford Airport won their local and airlines won’t have the aircraft available. It is going to be a big Shimon Speigel council’s approval for a new terminal Creative Director building. You can also read about logistical and operational challenge how Stansted been making its case for all of us to be ready to maximise Natalia Lacerda to a public inquiry to secure approval the benefits of a restart. My hope is Graphic Designer for an extra eight million passengers that Ministers and officials will work GENIUM a year, while London Luton is seeking with us to set out a clear pathway Studio 27 council approval for a one million to reopening so that, when the time Quadrant Business Centre increase in its annual passenger cap, comes, we will all be ready to play our 135 Salusbury Road Bristol Airport is appealing against a part in the nation’s recovery. London NW6 6RJ council decision to reject its plan for a two million increase in its cap and Karen Dee, Chief Executive T: +44 (0)20 7089 2622 Southampton Airport seeks council E: [email protected] approval for a vital runway extension. W: www.geniumcreative.com 4 AOA URGES BUDGET SUPPORT FOR UK AVIATION AND WARNS THAT THE SURVIVAL OF UK AIRPORTS IS AT STAKE The Airport Operators Association has launched a 15-point Airport Recovery Plan in a bid to secure urgent support for UK aviation in Chancellor Rishi Sunak’s 3 March Budget. WWW.AOA.ORG.UK 5 THE AIRPORT OPERATOR SPRING 2021 6 The report comes with a warning from AOA Chief Executive, Karen Dee, that “this summer must be a success for aviation if airports are to survive in the coming years”. She said: “A further delay in airports’ recovery leaves the UK’s economic recovery at risk and the UK Government’s levelling-up and global Britain agenda in tatters. If government fails to step up to the plate, the impacts are clear: people and businesses who depend on aviation for their own success will carry the heaviest burden, particularly outside London and the South East of England”. In the run-up to the Budget the AOA has been meeting MPs of The impact of the pandemic on UK airports had been all parties to outline its recovery “unprecedented” and was felt across all airports, but plan. MPs on the Transport Select Committee have been fully briefed significantly more so at smaller airports. and copies of the report shared with Shadow spokespeople, airport and that sets out how and when testing to facilitate a world-leading border aviation-interested MPs and peers will reduce and finally eliminate experience. and similar groups in the devolved quarantine for international travel. administrations. 10. Fund support for the further 4. Withdraw business support only roll-out of next generation security The 17-page AOA report, published gradually, with a continuation of equipment. on 3 February and described as “A measures such as business rate Recovery Plan to let UK airports relief and the Job Retention Scheme 11. Allow Apprenticeship Levy take off again”, sets out how the for the aviation industry. funds to be spent on general skills Government can support airports training. through the aviation shutdown, 5. Offer a 12-month Air Passenger help to restart aviation, boost Duty holiday, remove double- 12. Fund the first stages of the the aviation recovery, ensure UK charging of domestic APD and Airspace Modernisation Strategy. airports remain competitive and deliver discounted APD for flights world-leading, ensure a sustainable using sustainable fuels. 13. Establish a “Green Airports” aviation recovery and plan for future Fund to fund sustainable power pandemic resilience. 6. Reverse abolition of the airside and heat generation, electric VAT exemption and introduce vehicle charging infrastructure, low Specifically, it says that the arrivals duty-free. emissions airside vehicle uptake Government should: and sustainable aviation fuel 7. Establish Public Service infrastructure. 1. Extend full business rates relief in Obligation routes for important 2020/21 and retain relief in 2021/22, routes that are not returning and 14. Provide funds to improve while also providing alleviation from set up an Aviation Restart Fund to access to airports, including green regulatory and policing costs in the provide funding for airport charges transport options. current financial year and again in on certain routes. 2021/22. 15. Provide a framework for future 8. Reassert its commitment to pandemic management to be in 2. Cover airport operating costs “making best use of existing place if and when COVID-19 is during closure of domestic and runways” and the safeguarding of managed to a point where health international passenger movements land around airports. restrictions are no longer required. i.e., at least during the first quarter of 2021. 9. Fund research for the trialling In her introduction to the report, and implementation of current and the AOA Chief Executive said there 3. Put in place a testing framework future seamless journey technology was “a real prospect that 2021 is not WWW.AOA.ORG.UK 7 materially better than disastrous 2020”. AIRPORT OPERATORS ASSOCIATION The Report develops A UK Airport She pointed out that throughout Recovery Plan the COVID-19 crisis airports had three different remained open in the national traffic scenarios for interest, serving remote communities and key industries such as oil, the period 2021- gas and offshore wind, as well as providing emergency services and 25. All assume that bringing crucial supplies into the UK domestic traffic UK. All of these were costs borne by the aviation industry with little recovery is stronger government support or recognition.