THE PARTICIPANTSThe Debate
TONY BERRY INDUSTRY AND FARE DISTRIBUTION DIRECTOR, HRG
London’s population was born overseas. Heathrow is now effectively full with no
spare capacity. The decision not to move forward with a third runway at Heathrow or elsewhere in the southeast has been made by the coalition government and, while we respect their decision, we believe the decision is wrong and will need to be reviewed again in the future. Over the last 20 years or so our European competitors have dramatically expanded their airport capacity and Heathrow now faces fierce competition from other hubs across Europe – Amsterdam Schiphol now has five runways, Frankfurt has three and approval for a fourth, and Paris Charles de Gaulle and Madrid each have four. By contrast, there’s been no new runway built in the southeast of England since World War II. The aviation industry contributes over £11billion to the economy every year, facilitates tourism, fosters business links and supports around 500,000 jobs. Over half of UK manufactured goods (by value) are exported to countries beyond the EU by air. Earlier this year, the Department
for Transport was still fore- casting a doubling of airline passenger numbers from 241million in 2007 to 455million by 2030. It will not be possible to accommodate this growth without permitting new runways to be built. The Prime Minister recently emphasised the importance of tourism to the UK economy. If we are to compete effectively in this sector and other growing markets across the world, Britain must maintain its ability to provide direct air services through the provision of adequate airport capacity. Inevitably airlines will otherwise look at alternatives across the near continent, and more services and business will be lost to airports in Europe to the detriment of employment in the UK and the country's future economic prosperity.
THE LOBBYING GROUP Baroness Jo Valentine, Chief Executive, London First It is not so much a question of whether the UK can survive without a third runway at Heathrow, but more whether the country can flourish or not without it. It was inevitable that the coalition government would deny Heathrow expansion but it creates a big challenge. At a time when the country is facing a record deficit it is crucial that the country is seen as open for business. The prosperity of the UK is in large part driven by London’s continuing success as a global business centre.
As the UK begins to recover from the downturn a fit-for-purpose Heathrow airport will help London pack a punch in the fight for international business. As a world city, London competes with its international counterparts – New York, Paris and Tokyo – and global transport links, being one of the deciding factors for business when choosing where to locate, are central to London’s competitiveness. Running at 99 per cent capacity (with the associated delays and poor passenger experience) Heathrow is already too stretched to support London’s growth. In the coming years, as business continues
to become more global, it will need to travel to wherever the deals are to be done. The creation of the Aviation Task Force and
" Over the last 20 years our European competitors have expanded their airport capacity and Heathrow now faces fierce competition"
the government’s commitment to changes in economic regulation of airports show a willingness to make Heathrow better. Terminal 5, for example, has undoubtedly improved the passenger experience, but an alternative solution to the problem of an over- full Heathrow and increasing demand for air travel needs to be found, and it needs to be one which doesn’t hurt the British economy. If Heathrow cannot expand
we need to make it as good as it can be within the current constraints. Part of the solution will be to reform the way Heathrow operates. Regulation that puts the passenger first will be key to restoring Heathrow to premier global standards. What is needed is a customer-orientated approach to immigration, which processes passengers
quickly and provides a pleasant experience. Adjustment to current slot allocation and the introduction of mixed mode operations – allowing take-offs and landings on both runways – would also help drive up service quality, reduce queues, provide extra capacity and provide greater resilience at the current number of flights, therefore reducing flight delays. However, the trade-off would be the localised environmental impacts mixed mode runways would bring. London thrives by being a hub for global talent, which, with thousands of daily commuters, makes the capital the most economically productive region of the UK. To stay ahead of our rivals we need to box clever and play to our strengths – our access to international trade. But without expansion at Heathrow there will always be a glass ceiling on improving the passenger experience and the government will handicap London’s ability to foster the economic growth which UK plc needs to fund essential public services and meet its debts.
Tony Berry joined HRG in 1999 as director of product management; became operations director, EMEA, and was then appointed industry and fare distribution director in 2007. His career in the travel industry started in 1979 at Gulf Air, followed by appointments with Amadeus in France and Hertz Europe in the UK and US. In his current role Tony has responsibility for airfare distribution and supplier development, and works with trade bodies, lobby groups and regulators to help shape the worldwide corporate travel industry.
SIMON BUCK CHIEF EXECUTIVE, BRITISH AIR TRANSPORT ASSOCIATION
Simon Buck was appointed chief executive of the British Air Transport Association in April 2010. BATA is a trade body for UK registered airlines, with ten members across the freight, charter, low-fares and full-service sectors. The member airlines’ activities represent 85 per cent of UK output and employ 70,000 people. Simon has previously held senior positions at First Choice Holidays, Air 2000 and the Department for Transport. He joined BATA from AQA, the general qualifications awarding body, where he was head of public relations.
BARONESS JO VALENTINE CHIEF EXECUTIVE, LONDON FIRST
Baroness Valentine joined London First in 1997 as managing director, becoming chief executive in 2003. Her role centres on representing to national and local government the most pressing issues affecting London’s leading businesses. Its members include major businesses in key sectors such as finance, professional services, property, ICT, creative industries, hospitality and retail. Prior to London First, Jo Valentine worked in corporate finance and planning at Barings and BOC Group.
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