BUSINESS NEWS Airlines 2023 Conference: Ian Taylor reports from London event
CAA defends letting Heathrow and Nats hike fees
The CAA has defended its decisions to allow Heathrow and national air traffic control body Nats to increase their charges despite criticism from airlines. CAA group director of
consumers and markets Paul Smith told the conference: “We had a tough environment last year [but] there has been progress. We got to the end of the Heathrow [charging]
process. The decision was appealed by both sides, but the Competition and Markets Authority didn’t change the decision, so we got to a pretty good place. We [also] got the Nats price increases in place, so there is certainty.” However, Virgin Atlantic
chief customer and operating officer Corneel Koster argued: “Heathrow is the most expensive hub in the world. It wanted to double its charges and the increase was capped at 40%. OK, let’s make the service commensurate with the charges.” Smith noted the Nats meltdown on August bank holiday Monday
Paul Smith
Politicians place onus for a third runway on LHR
“had a significant impact” and said: “No one wants a repeat of that.” But he insisted: “We’ve seen a strong performance by Nats over the years.” Koster told Smith: “The issue
is that no matter what happens, the airlines are the bank of last resort.”
DfT ‘intent’ on growth in flying despite CO2 goals
The UK Department for Transport (DfT) is committed to facilitating growth in flying despite the challenges of decarbonising aviation. DfT aviation director David Silk
told the Airlines 2023 Conference last week: “It’s emphatically the case that we need growth. UK aviation accounts for 200,000 jobs. It’s important for trade. It’s important for inward investment and to generate investment in technology to ensure we reach sustainability over time. Our approach [is] to reach ‘net neutrality’ by 2050 while allowing growth.” He argued: “We want to enable
people to fly to generate the revenue to be able to decarbonise. If we don’t invest, we risk having an old, rusting infrastructure that can’t decarbonise.” However, aviation leaders urged
the government to move faster, in particular by providing incentives for investment in sustainable aviation fuel (SAF) production in the UK.
travelweekly.co.uk
‘UK aviation accounts for 200,000 jobs’
production. We want to move faster, to incentivise production faster. Other regions, the US in particular, are producing SAF faster. “We can produce first-generation
SAF today, but the raw materials will become limited. We need certainty to incentivise long-term sustainability.” Silk acknowledged: “People want
Oriel Petry, Airbus senior vice-
president and UK head of public affairs, insisted: “Aviation growth is critical. The key point is to make growth sustainable. It is frustrating we are not moving quicker to get SAF production going.” She suggested: “The UK target to have five plants producing SAF by 2025 looks challenging. It [the delay] seems to be about Parliamentary time.” Iata regional vice-president
for Europe Rafael Schwartzmann said: “We need to scale up SAF
us to go faster.” But he said: “It’s not just about Parliamentary time. This is complicated stuff. We need to consult. It needs time to work through.” He added: “I feel we have more
certainty and political commitment in the UK than in the US. We’re bringing everyone with us rather than rushing at it and regretting it later.” Schwartzmann argued: “There
are different pathways and we don’t know which will be most successful, but we have to invest and there will be risk in that investment. “The UK has always been a
leader in air transport, so it matters what the UK does.”
Heathrow 30 NOVEMBER 2023 79
Plans to expand Heathrow by building a third runway have been on hold since the Covid-19 pandemic despite official government policy remaining in favour, but transport secretary Mark Harper and Labour shadow aviation minister Mike Kane declined to signal a go-ahead at the Airlines 2023 conference in London last week. New Heathrow chief
executive Thomas Woldbye is expected to unveil revised plans and seek planning permission for a third runway. However, Harper told aviation leaders: “Any airport expansion is a decision for the airport. “If Heathrow wants to put
forward a proposal, it would be looked at and a decision made based on the evidence.” Shadow minister Mike Kane
reminded the conference that Labour Party approval for a third runway depends on meeting four tests and said: “We’re sticking to those four tests. If Heathrow passes those, we’re open to talking to them.” The tests relate to air quality,
noise pollution, “countrywide economic benefits” and the UK “meeting our obligations on climate change”.
PICTURE: Shutterstock/William Perugini
PICTURE: Telling Photography Ltd
PICTURE: Shutterstock/Leonid Andronov
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