Heathrow expansion: The Transport Select Committee of MPs examined the Continued from page 56


America, Jules Verne, Kirker Holidays and Solmar Villas. But it is Hotelplan’s mass-


market tour operator business in Germany and Switzerland which comprises more than half the value of Dertour’s acquisition. Hotelplan reported turnover


of CHF1.8 billion Swiss francs (£1.57 billion) in the 12 months to October 2024, of which Interhome – not part of the Dertour deal – contributed CHF390 million. Almost two-thirds (65%) of the remaining revenue (CHF915 million or £806 million) was generated by its volume tour operators in Switzerland and Germany. Hotelplan UK reported £212 million in turnover. Cologne-based Dertour


generated tour operator sales worth €37 billion and turnover for Rewe of €6.1 billion in 2023 – the last full year for which results are available – out of total revenue of €92 billion, two-thirds of it from Rewe’s retail division in Germany. Rewe reported a pre-tax profit of €1.6 billion. Dertour comprises operators,


retail agencies, franchise and online agencies in Germany, Austria, Switzerland, eastern Europe, Scandinavia, Finland, France and the Benelux countries as well as the UK. Its businesses include a leading tour operator in the Nordic countries (Apollo), one of Switzerland’s market leaders, and leading tour operators in Germany as well as the largest network of agents. The group also has a strong presence in eastern Europe, plus 71 destination management companies and 13 hotel and resort brands. Dertour has been wholly


owned by Rewe since 2000. The group acquired Kuoni in 2015.


Economists question the rationale for expansion


The economic case for Heathrow expansion requires fresh analysis, according to leading economists in the aviation sector. Heathrow confirmed last week


that it will present proposals for a third runway to the government this summer. But former Iata chief economist Brian Pearce, now executive director of the Air Transportation Systems Laboratory at University College London, said the case for a third runway made by the Airports Commission in 2015 is now out of date. Pearce told the Transport


Select Committee of MPs last week that “the world was a much more tranquil place” when the Airports Commission presented its findings. Asked whether the UK aviation


market today was similar to that in 2015, Pearce said: “No. When the Airports Commission looked at this a decade ago, its central scenario was an extrapolation of benign trends. We’ve had major changes in the world since then. It has become much more


Heathrow is ‘top global airport for premium flying’


London remains by far the world’s leading premium travel market, the Transport Select Committee of MPs was told last week. Brian Pearce said: “The


London air travel market is the largest in the world, ahead of New York and Tokyo, particularly for passengers paying premium


54 20 FEBRUARY 2025 Brian Pearce


fragmented geopolitically. There is a lot more protectionism. We’ve had major shocks, the most notable being Covid-19 and the war in Ukraine. “We’ve just about seen the


global aviation industry recover to 2019 levels. [But] we’ve lost about five years’ growth. We see higher costs and a downward revision in long-term growth projections. We’re looking at growth on a slower trajectory than a decade ago. “We need to take the [Heathrow]


forecasts with a great big pinch of salt.” Dr Alex Chapman, senior


economist at the New Economics Foundation, told MPs: “There


fares, the majority of whom are likely to be business passengers.” He noted: “Heathrow has


been full for two decades.” But he said: “London has twice as many premium-paying passengers as New York or Tokyo.” Pearce told the committee:


“Heathrow has been losing ground over the years, in particular to the Gulf [States]. But it’s still the second-busiest international airport [in the world] and still the top airport for international connections, which is important for business travel and trade.”


Heathrow He described the UK as “a


leader in many respects” in aviation, in “airlines and airports, in aerospace and in regulation”.


travelweekly.co.uk


is something not right about the modelling. There are 300 million passengers coming into and out of the UK every year [and] we’re widely regarded as one of the best- connected countries in the world.” He noted data for 2024 showed


“leisure routes being added to Turkey, Greece and the Canary Islands – not business destinations” and argued: “There is a welfare benefit to individuals, but a high cost to the climate and to wider society. Is that really worth it?” The Airports Commission,


headed by Sir Howard Davies, was commissioned in 2012 to examine the case for airport expansion and in 2015 recommended construction of a third runway at Heathrow rather than a second runway at Gatwick on economic grounds. But it suggested restrictions to reduce the environmental impacts, with a ban on night flights, a pledge not to build a fourth runway, a legal commitment on air quality and an aviation levy to fund insulation for homes and schools.


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