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Clear aviation strategy vital to UK economy.

The UK must develop a clear aviation strategy, or risk becoming “a branch line destination”, unable to compete in global export markets, according to the CBI.

The CBI’s chief policy director Katja Hall is calling for urgent action to ensure that the UK remains a major player in the exports industry whilst also attracting much needed inward investment.

In a speech to a Transport Times conference ‘A new strategy for UK aviation’, Ms Hall will highlight the damaging impact of Government inaction in this area.

She said: “With a private sector prepared to provide the airport capacity to meet rising demand if a clear government strategy can be set out, a continued policy of no policy represents a serious political gamble.

“It leaves us with one hand tied behind our back in our attempts to capture trade and investments in high growth markets.

“And in this Olympic year, where our focus should be on promoting the image of a world-beating UK, this is not the brand of an ambitious global economy that UK businesses want to be selling.”

In last month’s Budget, the Chancellor expressed ambitions to double UK exports to £1 trillion a year, but Hall believes that to do this, decisive leadership is needed.

“The UK has used its transatlantic geography over the last half century to put itself at the centre of the international air network.” Hall continued. “But as the global economy moves east and south, constraints at a hub airport running at 99 per cent capacity are preventing airlines from meeting demand for flights to growth markets in emerging economies.”

Seven major cities in China are now served by airports in Frankfurt, Paris or Amsterdam, which have no direct flights from the UK. Ms Hall also believes could undermine the UK’s image as a global hub for trade, finance and as a destination for overseas investment.

“It threatens our ambition as a centre for manufacturing in high-tech, high-growth industries. And it hits the export potential of individual businesses across the UK.” She added.

The CBI is now calling on the Government to take action to maximise the capacity of existing airports, whilst also prioritising road and rail schemes to improve access to a number of airports, including Gatwick, East Midlands, Newcastle and Bristol.

“We cannot become obsessed by a polarised debate that seeks to present development of our hub capacity and growth at other UK airports as mutually exclusive options; they are not.

“An effective hub should be complementary to a network of thriving regional airports providing direct links to the most popular destinations in Europe and beyond.

“And we need to begin a process now to deliver a new runway to serve the south of the UK within the next decade – at Heathrow, Gatwick, Stansted, Birmingham or elsewhere – subject to an urgent review of the most feasible option to address the current serious constraints at Heathrow.

“And for the longer-term we need to explore all options, including a new hub airport for London.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .