BUSINESS NEWS cuss APD, sustainability, regulatory powers and more. Ian Taylor reports from Westminster
Weiss warns ‘the looming UK recession is a big deal’
The aviation and travel industries face a “tough” 2023, Virgin Atlantic chief Shai Weiss has warned. Speaking at the Airlines 2022
conference in London, Weiss said: “Who would have thought after three years of pandemic we would be facing such a difficult situation?” He told aviation industry leaders: “The looming UK recession is a big deal.” Weiss described this summer’s
demand as “robust” and said: “We still have Christmas, New Year and Easter. But I am not underestimating the challenge of 2023. Optimism is not really a virtue in planning.” He argued: “In 2022, Virgin
Atlantic will surpass our flying in 2019 with 20% less capacity. We have a positive attitude. But we can’t fight the [economic] cycle. “The good thing is we have
a stable government now and a stronger pound. But it is going to be a tough 2023. “We need the price of energy to
come down, inflation to come down and growth to enter the equation because the Office of Budget Responsibility [OBR] has forecast
Virgin Atlantic chief Shai Weiss: ‘We can’t fight the [economic] cycle’
the economy won’t return to its pre-pandemic level until 2024.” However, Weiss added: “From
Covid, I take the lesson that we can rise to any challenge.” Manchester Airports Group
chief executive Charlie Cornish told the conference: “We need the government to have a sensible growth plan. UK aviation growth is linked to UK economic growth, so we need an economic growth plan.” The OBR estimated the UK
economy was already in recession when chancellor Jeremy Hunt made his autumn financial statement last
week, and the economy is forecast to shrink by 1.4% in 2023. Disposable household income is
forecast to fall by a record 7.1% over two years and the economy only return to its pre-pandemic level in 2024. Heathrow chief executive John
Holland-Kaye argued: “If we want a successful UK economy, we need a successful aviation industry and connectivity to global markets. “Some people would like to kill
the [aviation] golden goose with taxation. We need a balance to ensure UK aviation can thrive and fund a green transition.”
Virgin chief urges Heathrow to serve ‘all stakeholders’
Heathrow Airport has become a “de facto monopoly” and the way it is operated “an abuse of power”, according to Shai Weiss, chief executive of Virgin Atlantic. Weiss hit out at Heathrow and
the CAA over its regulation of the airport’s charges, saying: “The regulatory framework is broken. It must focus on all stakeholders and not just on the profits of Heathrow shareholders.” He said Virgin Atlantic
had withdrawn “unequivocal support” for Heathrow expansion because of the airport’s increased charges, saying: “It’s difficult to support a third runway at Heathrow. We would, but only if Heathrow remains competitive. “We learnt through the
pandemic and the last CAA consultation [on Heathrow charges] to refine our unequivocal support [for a third runway].” Weiss described Heathrow
chief executive John Holland-Kaye as “a very good leader” and said: “We have multiple touchpoints with Heathrow. But there is one big issue. He wants to increase charges by 120% and we did not agree with the cap on volume.”
Alderslade: Sector must boost official links beyond DfT
The aviation industry needs to engage with government beyond the Department for Transport, according to Airlines UK chief executive Tim Alderslade. He said: “Covid was a test of
travelweekly.co.uk
how we should be engaging with government. The way the industry worked with [DfT] ministers was good. But the times we went to other government departments we were told ‘Speak to the DfT’. “We have to get other departments
to think about aviation – the Treasury, the office of Number 10, the Department for Business [BEIS]. We need the Treasury, Number 10 and BEIS to see aviation as a strategic asset.”
Tim Alderslade
months from a general election. We have cross-sector support for modernising airspace. We need to make sure they do that. We need to ensure the Jet Zero agenda and support mechanisms required.” He warned: “Aviation is a difficult
However, he suggested the
sector refrain from presenting a list of demands, saying: “We need to be realistic. We’re 18
sector to decarbonise. Other sectors will decarbonise earlier. We’re in danger of being singled out. “If there is one thing we achieve
in the next couple of years it has to be on sustainability.”
24 NOVEMBER 2022 Xxy xy xy xy y x 87
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
