McLoughlin: We do plan to grow airport capacity
Ian Taylor
ian.taylor@travelweekly.co.uk
Transport secretary Patrick McLoughlin has assured the industry the government is convinced of the need to expand London’s airport capacity, but immediately came under pressure to rethink this comment from an influential committee of MPs.
McLoughlin told a British Air
Transport Association (Bata) dinner in London last week: “Airport capacity in the southeast is about as important as it gets. Sorting out this issue is critical.” Referring to the Airports Commission review, published last summer, he said: “The government accepted the case for expansion. We intend to meet the commission’s requirement for an additional runway by 2030.” However, the chairman of
the Commons Treasury select committee, Conservative MP Andy Tyrie, called for more detail on the calculations behind the commission’s recommendation to expand Heathrow. In a letter to Chancellor George Osborne, Tyrie
“Britain’s infrastructure- averse culture has a history of derailing vital transport schemes”
described the commission’s case as “opaque”.
Gatwick hailed Tyrie’s comments
as “significant”. But a government spokesman suggested there is “no appetite for opening this up”. The government had promised a decision on expansion by the end of last year, but in December it announced a delay until this summer. In a recent radio interview, McLoughlin suggested the delay could be longer, saying: “We’ve said we hope to move some way by the summer. There are lots of other things going on in the political spectrum.” However, McLoughlin told Bata members: “The decision was delayed to make sure we’re fully prepared, so we know from the outset we will get the job finished. “Britain’s infrastructure-averse
culture has a history of derailing vital transport schemes. To risk any chance of failure at this
MCLOUGHLIN: ‘Airport capacity in the southeast is critical’
stage would be unacceptable. “Does the delay mean we lack
the evidence to make a convincing decision? Absolutely not. We’re using this time to make the case for new capacity even more watertight.” McLoughlin said work was under way on the commission’s recommendations in relation to air quality, carbon emissions, noise, mitigation for local communities and economic analysis. He pledged: “We’ll make
a decision once this work is finished.” The transport secretary did not say when, but insisted: “It will ensure the commission’s timetable for delivering the capacity can be met.” McLoughlin added: “One of the most persuasive arguments for new capacity is the links it will provide to the north, southwest, Wales, Scotland and Northern Ireland. Opponents suggest a new runway would undermine our domestic
network. The reverse is true.” › Talk Back, page 23
Ryanair raises profit forecast to €1.17bn
Ryanair more than doubled its profits in the final three months of 2015, leading it to raise its 12-month profit forecast to between €1.175bn and €1.225bn. The airline carried more than 100 million passengers in the past year, up from 90 million in 2014, and expects to carry 106 million in its full financial year. In third-quarter results released on Monday, Ryanair reported passenger numbers for October- December up 20% year on year to almost 25 million
and revenue up 17% to €1.33bn, giving a three-month profit of €103 million – 110% up on the previous year. Ryanair chief executive Michael O’Leary said: “We noticed weaker pricing and bookings immediately after the terrorist events in Paris and Brussels [in November]. We reacted by running price promotions and discounted fares.” The carrier expects “double-digit traffic growth” in the UK and seven other European markets this winter.
COMMENT
Sterling’s buying power is especially good for long-haul holidaymakers
These are unsettling times for the industry. The cancellation of Tunisian programmes, ongoing security issues in destinations and capacity concerns are enough to give anyone sleepless nights. On top of this we have to
contend with turbulence in the currency market. It’s less than a month since
the Post Office Holiday Money Report reflected on the power of the pound and the role this is likely to play in destination choices in the coming year. Since then, sterling has fallen against the euro, while the US dollar is at a five-year high against the pound. But sterling is on the up against currencies in many long-haul destinations, including South Africa and Mexico, where holidaymakers will have 20% more cash to spend than a year ago. They will also be quids in if
they travel to Malaysia, New Zealand, Canada, Kenya and Thailand, while anyone considering Brazil will benefit from sterling gaining more than 43% against the Brazilian real. Sterling may have fallen 5% against the euro in the past month, but it remains roughly on a par with its value a year ago (and worth almost 10% more than two years ago). It remains a
financial win/win for people visiting most resorts in Europe and many farther afield.
ANDREW BROWN Post Office Travel Money 4 February 2016
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