NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK
estimated it would take four years when we believe we could complete it by September.” Walsh claimed “the majority of the money” Heathrow makes from airport charges “goes straight into the pockets of its shareholders”. “Heathrow paid £1.4 billion
to its shareholders in the last two years and invested £1.3 billion in the airport,” he said. “The average charge for each departing passenger is slightly more than £44.” Walsh called on ministers to consider extending an existing Heathrow runway rather than building a new one and said: “If the government chooses Heathrow’s proposal, we want to see shareholders shoulder the risk and the burden.” He insisted Heathrow should not be allowed to use “suppliers and parties related to the airport’s major shareholder and construction firm Ferrovial”. And he argued: “Any new runway should be phased in to keep down costs. There is no need to build all the facilities at once. Construct the new runway first, using existing terminal facilities.” He said: “There is no justification for pre-funding investment in infrastructure. Today’s customers should not be expected to pay for a development that won’t be operational for 10 years.” Walsh insisted: “If there
is expensive expansion at Heathrow or Gatwick we will expand through other hubs.” The government has
indicated a decision on a new runway could be announced this July or September. But David Cameron’s resignation, announced on last week, could jeopardise this. Boris Johnson, a leading contender to replace Cameron, has ruled out expanding Heathrow.
Abta Travel Matters: The outcome of the EU referendum hung over la
Industry leaders voiced late support for Remain
Industry leaders were hoping for a Remain vote in last week’s EU referendum. However, International Airlines Group chief executive Willie Walsh said leaving would have “no long- term material impact” on IAG.
Abta chief executive Mark
Tanzer told the Travel Matters conference: “We’re at a fork in the road.” He said: “Abta came to the conclusion that the travel industry has more to lose than to gain by leaving [the EU].” Referring to the joint Abta-
Deloitte report on the impact of a Brexit published in March, Tanzer said: “We’ve been a sane voice in the cacophony. If there is a vote to leave, we’ll reassure people that nothing will change in the short term, except that you may get fewer euros for your pounds.” Graham Pickett, Deloitte head
of travel, tourism and hospitality, warned: “Brexit could be damaging.” Virgin Holidays managing
director Mark Anderson agreed, saying: “If we leave who knows what will happen to the pound and to consumer confidence.”
‘Don’t devolve APD to Scotland: scrap this futile tax’
Willie Walsh warned of the dangers of devolution of APD to Scotland as planned and called instead for its abolition. The IAG boss told the
conference: “The Scottish government is reviewing whether or not to reduce APD by 50% as a precursor to getting rid of it. “While we welcome this as a
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travelweekly.co.uk 30 June 2016
PANELLISTS: From left: Mark Anderson, Virgin Holidays; Stephen D’Alfonso, Abta; Stephen McCall, IHG; Doreen McKenzie, Knock Travel
“If there is a vote to leave, we’ll reassure people nothing will change in short term”
Walsh told the conference: “The
aviation industry and consumers in Europe, including the UK, have benefited from free trade within a common aviation area.” But he said: “We’ve undertaken
step in the right direction, the piecemeal reduction of this tax will only undermine airports in the north of England and create a domino effect. “Passengers will rush across
the border to avoid paying the tax in Newcastle and Manchester. Amending the tax regime there would have a knock-on effect at Leeds Bradford, then Birmingham. “This is already happening in
Ireland. There is no aviation tax in the Republic so passengers in Northern Ireland head south.” Walsh said: “The Treasury
a risk assessment and, at this stage, concluded that if Britain votes to leave this will not have a long-term material impact on our business.” Walsh added: “I believe Britain’s interests are best served by staying in the EU.” Stephen McCall, chief operating
officer for hotels group IHG in Europe, said: “Economies don’t normally benefit from uncertainty.” Abta chairman Noel Josephides
warned: “I fear what will follow the [referendum] vote will take us backwards.”
must acknowledge ‘partial APD’ would not work. There is one clear answer: scrap this futile tax.” However, Scottish Passenger Agents Association political convenor Sandy MacPherson questioned “the assumption that the Scottish government will reduce or abolish APD”. He said: “There has been a change in the Scottish government and there is very little prospect of a reduction or abolition of APD at present.” The Scottish National Party,
which made the pledge of a 50% cut in APD, no longer has a majority.
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