regional air access presentation to nestrans february 2013 laurie price aviation consultant
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Regional Air AccessPresentation to NESTRANS
February 2013
Laurie Price
Aviation Consultant
The issues
1) Air access to Heathrow. Implication to:
•Help the NE Scotland economy
•UK economy
•The threat to regional links
2) Airport Charges and the CAA remit:•Heathrow
•Gatwick
•Implication to travellers, the regions and NE Scotland
3) The EU role and UK policy
4) Night movement policy
5) The Davies Airports Commission
Heathrow Movement Allocation Arrivals Summer (Typical Week)
Source: Airport Coordination Limited (ACL)
Heathrow Movement Allocation Departures Summer (Typical Week)
Source: Airport Coordination Limited (ACL)
LGW – Summer 2013
DfT estimates of key airport capacity
Source : Hansard
Capacity Available: Heathrow 4000 ATMs - under 1%Gatwick 15,000 ATMs - circa 6%
London airport ranking – by type of airline operation
Legacy
1. Heathrow
2. Gatwick
3. Stansted
4. Luton
LCC / Leisure
1. Gatwick
2. Stansted
3. Luton
Primary Connectivity = London Heathrow
8
Market - Total terminal passengers at UK airports 1971 - 2011
0
50000
100000
150000
200000
250000
300000
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Year
Pax
(Mill
ions
)
0
10
20
30
40
50
60
70
80
90
100
Crud
e O
il
Passengers Crude oil price
2001 Terrorist Attacks
2003 Iraq War / SARS
1995 Introduction of Low-Cost Airlines
1988 Lockerbie
1991 Gulf War
1985/86 Libya/Chernobyl
1983 Europe Deregulation
1979 US Deregulation
1974 Fuel Crisis
1982 Falklands War
1981 Fuel Crisis + Recession1977 Bermuda II
Source: CAA Airport Statistics , OPEC
2008/9 Economic Crisis
9
Terminal Passengers at UK Airports Annual Growth Rates 1971-2011
Source: CAA Airport Statistics , OPEC
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%1971
1976
1981
1986
1991
1996
2001
2006
2011Pa
sse
ng
er
Ann
ua
l G
row
th R
ate
s (
%)
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
Cru
de O
il P
rice
Ann
ua
l G
row
th R
ate
s (
%)
1974 Fuel Crisis
1977 Bermuda II
1979 US Deregulation
1982 Falklands War
1983 Europe Deregulation
1985/86 Libya/Chernobyl
1991 Gulf War
1995 Introduction of Low-Cost Airlines
1981 Fuel Crisis + Recession
1988 Lockerbie
2001 Terrorist Attacks
2003 Iraq War / SARS
Note: Historic oil price shown in US$ and the exchange rates between USD and GBP were not considered
10
UK
Global propensity to fly
Source: Airbus
Department for Transport: Constrained Demand Forecast
Source: DfT UK Air Passenger Demand and CO2 forecasts
Latest Traffic Projections : 2030 320M – 345m. 2050 480m – 520m
Aberdeen London Links
• Heathrow – 8 services a day - BA
• Gatwick – 2 services a day – EZY
• London City – 3 per day (Mon – Fri) – BA
• Luton – 1 per day - EZY
Only the Heathrow link offers the frequency and global connectivity that Aberdeen needs to sustains its economic development
Before Virgin competing service of 3 per day introduced which will reduce BA frequency. Virgin service has only 6 year slot protection at Heathrow
London Airports achieve the highest passengers per movement in Europe
Achieved at the expense of regional air service links and frequency
Lack of Capacity in London
LHR LHR LHR LHR LHR
LGW LGW LGW LGW LGW
STN STN STN STN STN
LTN LTN LTN LTN LTN
LCY LCY LCY LCY LCY
0
400
800
1,200
1,600
2,000
2,400
2,800
2009 2016 2023 2030 2040
Year
Air
Tra
nspo
rt M
ovem
ents
(000
s)
UnmetDemand
UnmetDemand
UnmetDemand
Source: Mott MacDonald Analysis of DfT forecasts
Runway capacity: London and UK regions
• London has insufficient runway capacity to meet demand
– 6 operational runways
– 130 million passengers
– 21.7 million passengers per runway
• Regions have excess runway capacity to meet demand
– 23 operational runways
– 88 million passengers
– 3.8 million passengers per runway
• But peripheral regions need London access, specifically to the Hub
Source: Analysis of CAA Statistics,
Slot shortage implication to UK regional links
• 20 UK regional points lost access to Heathrow in last 30 years• Frequency and competition on other UK regional routes to Heathrow
reduced• Only 7 UK points served to Heathrow – Leeds Bradford precarious. • All remaining regional routes into Heathrow vulnerable to service /
frequency reduction due slot shortage and increased airport charges • Using scarce slot for an A380 is 4+ times more valuable than A319 • Aberdeen very valuable for long haul connectivity and yield – Middle
East and Houston key connections • Government refusal to use EC Public Service Obligation protection• Plymouth Airport closed due lack of PSO. Other airports and routes
vulnerable• 40+ French domestic routes slots protected by PSO
Airport Charges 1• UK major airport charges regulated by CAA.
• But subject to Government Policy :“Better not Bigger”
• Charges regulated against set criteria and allowing Return on Investment to efficient operator
• CAA allowed:– 62% increase in Gatwick charges– 3 x Inflation increase at Heathrow – Minimum per passenger fee
£22 by 2014. Add APD means £35 of charges plus the fare to ABZ!
• FlyBe already pulled off routes due increased charges including ABZ – LGW.
• FlyBe blame current losses on APD and airport charges
Airport Charges 2
• At Heathrow short haul / UK regional passengers paying increased charges to pay for facilities terminal facilities when they need runways and guaranteed connectivity
• CAA accept that following Government Policy means they discriminate against regional access
• CAA has no remit to encourage or recognise air service impact on:– Economic development– Employment– Peripherality
EU Aviation Policy and Regional Access
• EU responsible for setting broad policy including aviation and the regions
• Economically, EC keen to see greater economic and social convergence between periphery and centre
• Key issues for air transport and the regions• The Airports Package and EC Slot Regulation• Slot regulation currently being debated in European Parliament• Debate over:
– “Use it or lose it “ percentage of use proposals – Length of slot series
• Possible opportunity for Regional lobby?• UK odd man out in Europe in not using PSO protection for regional
services to key hub airports• EC has confirmed that PSO protection is “Airport to Airport” not City
to City as DfT has maintained; fundamental to ABZ connectivity
DfT Night Movement Consultation
• DfT Issued 70 question consultation on Night movement policy in January 2013• Deadline for response 22 April 2013• Focus on Heathrow, Gatwick and Stansted and impact of night flights on sleep disturbance• Will establish policy for night flying, feed into broader aviation policy and Davies
Commission
Initial response from industry and of relevance to NESTRANS
• Royal Mail and DHL need night flights to meet their service guarantees
• The Royal Mail used to operate from Gatwick but were forced out due to noise.
• The same could happen at Stansted, if the offset for more runways is a reduction in night time operations.
• The key is access time from the sorting centres in London. Move further out and the cut off and delivery times and guarantees worsen.
• Using East Midlands would add an hour both ways .
• Serious implication to Scottish business and commerce if night flight regime changed
Davies Airports Commission – Questions on Regional Connectivity
Impacts on access to aviation connectivity
• Changes in access to aviation from key business districts and other areas reliant on international connectivity.
• Changes in access to aviation from major population centres, and areas of expected population growth.
• Improvements in access to international connectivity from areas previously poorly served.
• Changes in the overall numbers of people and businesses with access to international aviation services by public transport and by private transport.
• Impacts upon internal connectivity within the UK, and consequent access to international aviation services, including specific social and economic impacts on Scotland, Wales and Northern Ireland.
Source: Airports Commission Discussion Paper February 2013 Page 19
Possible actions by NESTRANS
• Brief MPs, MEPs and MSPs and Lords• Seek parliamentary questions / debates on
– Air Services access to the hub and slots– PSO protection for UK regions – Airport charges and implication to regions
• Use EC Transport Commission contact / visit to influence airport policy at EU level and to pressurise UK DfT.
• Respond to DfT Night Noise Consultation• Invite Sir Howard Davies to visit NE Scotland and the Highlands
to see problem at first hand and register that NESTRANS will respond to the Commission Consultation
• Consider affiliation with Airports Regions Conference to gain European peripheral region support
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