Runway capacity
We await the recommendation from the government on plans to allow full utilisation of Heathrow’s two existing runways and the construction of a short, third runway – subject to meeting stringent environmental safeguards.
This follows a public consultation during which protestors made sure it was high on the media agenda. Interestingly, in the area around Heathrow, where you might expect opposition to expansion to be strongest, a Populus opinion poll of residents in the 12 boroughs closest to the airport showed 50 per cent backing for a third runway, with opposition running at 30 per cent. The majority in favour of mixed mode was larger still.
Business leaders were vocal in their backing for sustainable growth and made it clear that London and the UK needs a world-class airport that has the capacity to provide the range of air links you need for success in a global economy. We hope the government holds firm in its clear intent to go ahead with the third runway because it is important not just for British Airways but for London and the UK economy.
Climate change
In this context we realise that climate change is perhaps the biggest long-term challenge we face. It is important for the public to understand that the atmosphere has no preferences whether emissions come from aviation or agriculture, from China or the UK. But it does matter that cuts in those emissions are achieved in the most economically sensible manner. This message is often lost in the emotional headlines around the issue.
Aviation worldwide accounts for approximately 2 per cent of global CO2 emissions, and allowing for growth, it is forecast by the UN to produce about 3 per cent by 2050. In comparison, road transport generates about six times as much CO2 and power generation and deforestation around ten times as much.
We believe carbon trading is the most effective way of controlling emissions in an economically sensible manner. So when the UK Government endorsed the introduction of aviation into the EU Emissions Trading Scheme it should have been a decision to welcome. But we were disappointed that the implementation date was delayed until 2012 and not confined to intra-EU airlines.
To impose it on foreign airlines flying into and out of the EU will provoke significant international opposition and lead to further delays in implementation. A better approach would be to restrict the scheme to intra-EU travel and negotiate the global development of an emissions trading scheme.
HM Treasury announced its intention to replace Air Passenger Duty with a new ‘per plane’ tax with effect from November 2009. The Treasury’s consultation on this proposal has now closed.
We have serious concerns that this new tax will distort competition and discriminate against UK network and longhaul carriers, while at the same time incentivising travel over rival European hub airports with no benefit to the environment.
Any new tax should be balanced and non-discriminatory and should retain the current transfer exemption for connecting passengers. In any event, once UK aviation joins the EU Emissions Trading Scheme in 2012, any existing taxes should be phased out.
We are the only airline offering the benefits of a full service carrier from Gatwick to destinations such as Antalya, Faro and Malaga.