Partner Article

Less South East focus, regional airport leaders say

Regional airports say the Government’s aviation policy must take the focus off the South East and encourage airlines to use other UK airports.

The draft policy centres around runway capacity, increasing links to emerging markets and managing the environmental impact of airports.

Partnership working is also highlighted in the document, pointing towards a format for airports to work in conjunction with local stakeholders to strengthen and streamline the industry.

Elsewhere, the Government suggests that its Civil Aviation Bill, which is currently moving through Parliament will modernise regulation for airports, providing the Civil Aviation Authority with more flexibility to regulate airports deemed to have substantial market power.

Peter Nears, Strategic Planning Director for the Peel Group commented: “The Government draft policy talks of the importance of regional airports to connectivity and the growth of local economies. However, if this is to be more than warm words, it needs specific action to move away from the current situation where airport policy debate is dominated by the issue of capacity in the South East.

“The economic problems of recent years have had a disproportionate impact on smaller regional airports, especially those located in areas of high deprivation such as the Tees Valley. Yet regulation costs and taxation do not take account of either airport size or local economic circumstances and that is clearly inequitable.

“We also believe that the Government must reconsider the need for a lower regional rate for Airport Passenger Duty, given the widening in economic performance between South and North and the financial pressures on smaller regional airports.

“We already work closely with our Local Enterprise Partnership, Tees Valley Unlimited, and the Government’s draft policy mentions the possibility of LEPs taking a wider role. However, if that is to happen, they must have the resources to do the job.“What is crucial is that Government recognises that aviation policy cannot be considered in isolation—it must be co-ordinated with national economic objectives, in particular the disparity between North and South and the need to balance the economy in favour of manufacturing.

“Here in the Tees Valley, our industries contribute over £10 billion to the UK economy—in the last 12 months alone, the private sector has generated an additional 6,500 jobs and over 30 per cent of the UK process industries are located here.

“That should be important to the Government in co-ordinating transport and economic policies. The Policy Framework refers to a Taskforce for South East airports, yet there is nothing equivalent for regional airports in the North.“We have real and recent experience of the need for a joined up approach following our failed bid to the Regional Growth Fund and we believe it is an issue which has to be tackled if the Government is to develop a genuinely national policy for aviation.”

Paul Kehoe, Chief Executive of Birmingham Airport, said: “This submission is taking the Government for its word. If it is serious about making the best use of existing capacity at UK airports, it needs to balance capacity restrictions on airports in the South East with policies that encourage airlines to use other UK airports. This will help rebalance the economy away from a dependence on financial services and the South East as the sole engines of growth.

“Business leaders in the Midlands are calling out for greater long-haul connectivity from Birmingham Airport. They know that the economic fruit of aviation doesn’t fall far from the tree. It is time for the Government to branch out and pursue policies that unlock the potential of UK manufacturing.”

This was posted in Bdaily's Members' News section by Tom Keighley .