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The new chief executive of the British Air Transport Association cut his industry teeth in charter airlines and tour operators. He tells Chris Gray that he means to make sure his voice is heard
‘We’re the answer, not the problem’
personal background in Whitehall, charter airlines and tour operators, Buck is well placed to see how the different sectors of the industry and government can work together. But his experience in the Department for
S
Transport and First Choice also means he can see vividly when opportunities are being missed, and he believes Britain is currently in the middle of missing a massive opportunity.
Right combination The aviation and tourism industries could help to lead the UK out of recession, but instead they are being hit with tax increases and a block on much-needed airport expansion. The results threaten to suppress domestic demand, risk the future and economic benefits of regional airport routes, and make the UK miss out on a wave of incoming tourism from growing economies such as India and China, Buck believes. He is flabbergasted that, at a time of massive
pressure on the public purse, the government has vetoed runway expansion at Heathrow, Gatwick and Stanstead airports — none of which
Simon Buck: The CV
2010-present Chief executive, Bata
2006-10 Head of PR for qualifications body AQA
2002-2006 Head of Industry Affairs, First Choice
18 03.09.2010
1995-2002 External affairs manager, Air 2000
1983-1995 Private secretary to Minister for Aviation and other roles, Department of Transport
imon Buck’s frustration, not to say anger, is clear from the moment his attention turns to government policy on aviation and tourism. With a
he says would have cost the taxpayers a penny as they were financed by airports and airlines. Instead it is committed to spending billions of public money on a high-speed railway that he believes should complement, rather than substitute for, improved air links. “If you build two miles of railway track, that is
what you get. If you build two miles of runway, you get the world,” he says. Instead, the restriction on airport expansion in the south-east, together with increases in Air Passenger Duty, and potential rise in overall tax raised by a per-plane duty, will make it more difficult for Britons to get to the world, and for the world to visit Britain, he believes. Restrictions on airport capacity in the south- east will mean fewer and more expensive flights available to tourists from India or China, who might like to visit the UK, but will equally be happy to go to France, Spain or Germany if there are more, cheaper flights available to Paris, Madrid or Frankfurt. Government encour- agement to Britons to holiday at home will not make up for losing these new markets, he warns. The arguments over the merits of a per-
passenger or per-plane tax are a distraction, Buck says, and the industry should focus on the overall tax take and its impact on tourism.
Enough is enough “It has been an incredibly difficult year and the last thing we need is another kick in the under- carriage with an increase in the tax take from the industry,” Buck says. “The tourism industry is being told it is vital to
the recovery but is then hit by more tax rises that are damaging our potential to contribute to economic recovery. Enough is enough.” The regions are set to suffer disproportion-
ately from any increase in tax, because of the relatively thin margins for regional airport services, he warns. “When times are hard airlines will consolidate back to their hub airports. If you continue to hike aviation tax they will think very carefully about whether they will continue that service. “There is a squeeze on services operating
from regional airports which will affect jobs in the airports, businesses related to them and in the localities around them.” Bata bills itself as “The voice of UK airlines” and it includes all the big UK carriers with the exception of easyJet. But with the members including British Airways, Flybe, Thomson Airways, DHL, and
Jet2.com, finding a common view can be challenging. One area where it will be impossible is Atol
reform, long a source of frustration for Tui and Thomas Cook who are within the system, unlike the scheduled carriers who are not. With his members divided on the issue, Buck has to watch what he says, but he does point out that if BA was forced to pay the Atol levy, it would be effectively “subsidising most of the industry simply because of the number of BA flights.” He believes the solution lies in achieving more consistency of insurance policies so customers know that if they buy travel insurance, they will be covered if the airline goes bust.
On wider issues, though, Buck is adamant Bata will lead from the front in defending the industry. “Aviation is on the back foot and I am deter- mined to put our case strongly so that we are seen as a contributor to economic recovery rather than just a polluter. We are part of the solution to the economic problem”
cgray@ttglive.com
020 7921 8003 Chris Gray
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