Speech to Freedom to Fly conference, 24 July 2002

Rod Eddington, Chief Executive, British Airways

As you would expect, the issue of aviation infrastructure in the UK, and particularly of runway provision, is one that is close to my heart.

If it is to maintain its position as a key global business player, Britain desperately needs a long-term strategy that delivers modern infrastructure.

That is why I welcome the Government's consultation on new UK airport development options for the next 30 years.

The recognition that it gives to the role of a competitive UK aviation industry in meeting the needs of the nation is critical.

I know that projects of this scale aren't easy. We at British Airways are happy to support the Government in taking the difficult decisions, and taking them sooner rather than later.

But that doesn't mean that we're the only potential beneficiaries.

I believe that building extra runway capacity can truly be a win/win situation.

A good, balanced outcome for the UK economy, for passengers, for the aviation industry, for the environment and for local communities is possible.

Reaching the point where debate is underway and everyone is engaged in the issues is only the start. We need to ensure that the will, the energy and the urgency are applied to ensuring a decisive and positive outcome to these consultations.

That will involve national and local decision making to be expeditious. It will need those who determine the provision of airports, airspace, and surface access capacity, to act with speed, coherence and common purpose to reach implementation.

Only that way will we reverse the years of decline that have seen the UK falling behind other countries that have been quicker to recognise the benefits of improving and expanding their airport infrastructure.

The need for action is clearly demonstrated by the facts and figures. National demand for air travel is expected to grow about threefold by 2030 to some 500 million passenger journeys each year.

Additional capacity is inevitably needed to meet this demand. That means improved and new surface access, more airport terminals and redesigned airspace supported by new technologies.

Above all, it means new runways so that the number of flights can be substantially increased.

For many years the UK has failed to take these vital decisions. In the south east, where the need is greatest, there have been no new runways at major airport sites since the war.

Rival airports on the continent are developing runways apace. In two years there will be five at Schipol, four at Paris Charles De Gaulle and three at Frankfurt. As these other airports grow our biggest asset, Heathrow Airport, has dropped down the league table.
Heathrow was ahead of the rest ten years ago. Schipol, Paris Charles de Gaulle and Frankfurt Airport are now better equipped to deal with growing passenger numbers.

Both these airports on the continent saw substantial investment and growth through the '90s. Heathrow is now the only major airport that serves fewer gateways now than it did 10 years ago.

Within another 10 years, if we do not add runway capacity, Heathrow will be languishing near the bottom of the top 10 in Europe - with all the adverse consequences that will bring.

And this isn't just a case of being lazy and not getting the full use out of what we've got.

In the UK there has been remarkable achievement in getting the maximum use out of existing runways, especially in the southeast.

At Heathrow, demand management has meant that for almost every hour of every day, the runways are operating at capacity.

It has the biggest average aircraft size in Europe - about one third bigger than aircraft at the other main hub airports.

Take-off and landing delays, due to shortage of runway capacity, are greater than elsewhere.

Heathrow's role in UK aviation is unique.

The airline industry set up integrated transport via efficient airport hubs long ago. Nineteen of the world's 20 largest airlines operate a hub-and-spoke system.

These enable smaller traffic generating points to get access to a wide network of services via the hub, benefiting regional passengers and businesses.

The demand for these traffic flows - for example from Aberdeen to Cape Town - would never sustain a direct service. In addition, local passengers and businesses - in the UK's case, those in the south east - gain by getting a wider range of destinations and higher frequencies of service than would otherwise be possible.

That's why Heathrow is so important to the UK and the country's global competitiveness - it can fulfil this key hub role. Many companies locate within easy access of Heathrow for precisely this reason.

The need for UK regional access to and through Heathrow, to the rest of the world has to be addressed. We believe that [several] of the Heathrow runway options on the short list can achieve that.

However, I am not saying that the only extra runway in the southeast should be at Heathrow. That is the highest and most urgent priority, but it will not be enough on its own.

There are other needs to be met in the southeast - to support the charter and no frills carriers as well as all-freighter operations.

In our view, a national airport policy needs to include airport development at more than one airport in the southeast, led by another Heathrow runway.

What is also critical for the regions is that they are provided with sufficient well-located runway capacity of their own.

That means at Birmingham, in the Scottish Lowlands, and on the eventual provision of further capacity at other airports in the North of England.

Each of these decisions will affect the number of destinations and frequency of direct services that can be sustained from the airports of each region.
As I have already said, we are ready, willing and able to support the Government as we move into and beyond the consultation phase.

Our task is two-fold:

First, we will work with others who recognise the value of Heathrow to the wider interests of the UK and its regions, to make sure that we get that opportunity.

We will work with other airlines, the wider business community in London and across the UK, with the trades unions and our own staff. We will be looking to talk further with London and regional authorities, and with regional communities.

Secondly, we will also go out to the communities and interests affected around Heathrow, to engage in dialogue about the options now on the table for another runway at Heathrow.

In doing this, there is one myth that we will be aiming to dispel - the misconception that improving infrastructure is good news for industry and bad news for local communities. Improved surface transport and aviation infrastructure creates employment, wealth and reduces the stress of travelling within communities.

If it is neglected, then communities suffer - just ask the residents of Manila and Mexico City who have felt the detrimental effects of once adequate infrastructure being neglected.

There is a long history to Heathrow development, most recently the Terminal 5 Inquiry. British Airways made it clear through that inquiry that there were other decisions on airport development that would need to follow, and that another Heathrow runway would then have to be considered.

What the T5 Inquiry showed, is that there must be a better way forward in considering new developments.

It has been frustrating that through the development of the short list of options, we have not been able to open a dialogue with the communities.

However, we understood and respected the government's approach. It has very thoroughly tested a wide range of possibilities and created options that meet its sustainable development criteria while avoiding unnecessary blight.

We want now to have that dialogue in the local community and with the Heathrow area local authorities, to the fullest extent possible.

We want to know people's concerns and fears, and their aspirations and expectations from the industry and government - including the compensation, assurances and guarantees about controlling impacts.

It will come as no surprise that BA has been thinking about the possibility of additional runway capacity at Heathrow for some time.

This has been sufficient to convince us that there are sustainable options for another Heathrow runway. However, we need a little time to consider the specific views that have emerged from Government in the last couple of days.

Then, the precise nature of our response to government on the best Heathrow option will reflect the discussions that we plan to have with the local community.

In setting out on these consultations, BA will stand by the environmental commitments we gave at the T5 Inquiry.

We said we would not seek to add any more flights before 6 o'clock in the morning once T5 was opened. That remains our position, with another runway.

Seven years ago, we submitted evidence to the inquiry and committed that we would not introduce any new aircraft noisier than the 747-400. At that time we flew older, noisier 747s, and people were suggesting that future big aircraft would be noisier.

All those old 747s are gone now, and whatever the future holds in terms of fleet acquisition, we retain that commitment that we will operate no new aircraft noisier than our quietest 747 fleet.

Heathrow, as well as BA, has a record of continuous long term improvement in the noise climate; the number of people within its noise footprint has reduced from 2 million to about 300,000 over the last 25 years.

We believe that the tough maximum noise condition set by the Secretary of State for Heathrow in 2016, when permitting T5, can still be met with another runway.

We also believe Heathrow can become the UK's premier integrated transport hub, not only for air travel but also for surface transport.

Major investment in surface access infrastructure will be needed alongside new runway capacity in any location. But at Heathrow, by virtue of both its central location and critical mass, major access benefits will also accrue to the wider region.

Improving Heathrow rail infrastructure will in addition contribute significantly to tackling local air quality concerns, by curtailing growth in car traffic. This will complement our continuing programme of installing new technology combustors on our 747 engines, which is halving nitrogen oxide emissions during 747 take offs.

We were therefore delighted, on several counts, to see in the consultation options for developing a network of rail routes into Heathrow from the south and west.

We support the building of these links that form part of the essential transport package for Heathrow and also spread the economic benefits of Heathrow throughout the Southeast by making Heathrow more accessible.

We look to the Government and the Strategic Rail Authority to ensure that investment priorities are set for the next 10 years will deliver these essential rail schemes. We are already on record as welcoming the Crossrail link between Heathrow, the City and Canary Wharf.

With Heathrow restored to its leading role in international civil aviation by the addition of another runway that will be a truly competitive infrastructure corridor for London as a 21st Century world city.

At the local level BA has demonstrated its environmental credentials by converting a contaminated wasteland around our Waterside offices at Heathrow into an award-winning country park. It is London's largest new park of the 20th century and is well used by the local community.

BA would hope that a Heathrow runway development could equally be used as a catalyst for other large-scale local community improvements. We hope to develop ideas for such improvements from dialogue with the local community and will include these in our detailed response to the consultation.

We at BA are willing to pick up the challenge of this White Paper.

The aviation industry is being offered the prospect of the airport infrastructure we need, and that the UK needs - provided we meet demanding environmental targets and requirements.

If we get this right there is a great future for UK civil aviation, with developments across the country to meet the needs of the market - the passengers, freight shippers and the wider economic interest.

Heathrow with a new runway to meet the needs of London and all the regions can ensure that the UK industry has the strength to compete and develop effectively.

A healthy heart of UK civil aviation will mean that the whole of the industry and the UK economy will benefit.