The Debate
NO THIRD RUNWAY... ...WHAT NOW?
With the coalition government having ruled out a third runway at London Heathrow, we ask what the decision means for the airport, the capital city and the wider UK economy
THE TMC Tony Berry, Industry and Fare Distribution Director, HRG London Heathrow has long held the crown as one of the world’s busiest international airports. Once the US-EU Open Skies deal was implemented it seemed a foregone conclusion that airport expansion at Heathrow would follow, bringing a new runway, extending capacity and increasing the commercial viability of the airport. However, the coalition government has formally ruled out additional runways for not only London Heathrow, but also for London's Gatwick and Stansted airports too. Alternative schemes will need to be investigated to ensure Heathrow remains a commercially competitive international hub. For corporate Britain to survive without a
new runway at London Heathrow there are many factors to consider: capacity, carriers and of course the passenger experience itself. A recent survey by the Guild of Travel Management Companies suggested flight delays caused by both departure and arrival changes are the biggest cause of frustration for the business traveller. This is followed by the amount of time it takes for a traveller to pass through security checks. Without the additional new runway, London Heathrow may struggle with capacity issues. However there are signs that some of the projected capacity challenges have been eased. The advent of the low-cost or no-frills carrier has created opportunities for regional airports to take a share in domestic and short- haul European routes. This is beneficial to the regional airports and removes some capacity pressure away from Heathrow. Heathrow might also benefit from the rise in alliances between short-haul and international carriers. Such alliances provide the traveller with greater choice for European travel and connections via other international airports. The key to Heathrow’s future success is the ability to get the right balance between international and domestic flights. Ceding domestic flights in favour of international flights requires alternatives to be in place, such as an integrated high-speed rail network.
Currently, the time it takes to travel from
most UK cities to Heathrow, via London Paddington makes both car and domestic air travel more appealing and this is where Heathrow needs to make further developments in light of the ruling out of the third runway. One of the proposed alternatives to expansion at Heathrow expansion is the Thames Estuary development. This is not a viable option given the current appetite for economy, the increased focus on environ- mental impact and the length of time it would take to deliver such a project. Heathrow’s current infrastructure renewal project will keep corporate Britain travelling for several years to come if its passenger and domestic/international flight capacity is managed accordingly. There is a danger, however, if this is not managed that traffic will be lost to other European hubs.
THE AVIATION BODY Simon Buck, Chief Executive, British Air Transport Association As an island off the northwest of Europe, aviation is vital for the international connectivity of the UK and for its economy. UK airports also play a hugely important economic role in their regions and are vital for the links they provide to the geographically remoter areas such as the Scottish Highlands or Cornwall, for example. Heathrow has a unique role as the UK’s only major international hub airport, serving 180 destinations, hosting 67 million passengers and operating flights to many destinations not served by other UK airports. These include important destinations in major developing economies such as Mumbai, Shanghai, Beijing and Sao Paulo. It is also important to note that around one third of
18 I THE BUSINESS TRAVEL MAGAZINE
BAA
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