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News Desk
The government is under increased pressure today to review its policy on airports, following a report by the Transport Select committee looking at Transport and the Economy which has called for transport investment to be "backed up by a pro-active and a fully integrated economic development strategy". With London's aviation capacity running at full capacity most of the year round, business leaders and London politicians are increasing the pressure on the Coalition Government to look at adding more capacity to London airports.
Louise Ellman, Chair of the Committee said:
"We welcome the coalition Government's commitment to undertake transport investment that will deliver sustainable growth and enterprise, including 'green' industries, balanced across all sectors and in a manner that will reduce regional disparities."
"The Coalition also needs a much stronger strategy for developing the UK's major ports and airports. Improving connectivity through these key international gateways simply does not feature prominently enough in the Government's current approach to the economy."
"The Government must also do more to correct regional disparities in transport investment. Transport spending in London for 2008–09 was almost twice the UK average per capita and with schemes like Crossrail this trend looks set to continue. The economic recession has however had a bigger impact in the north so there is an urgent need for increased investment in transport schemes within and between northern cities – such as the Northern Hub rail scheme – in order to boost their capacity for economic growth."
Commenting on the report Syed Kamall Conservative MEP for London said:
"The issue of aviation capacity in the South East must be addressed by the Government. We cannot go on ad infinitum with a freeze in aviation capacity. The Transport Secretary, should be working with the Mayor of London on how to develop a new hub airport fit for future demand.
"Without the extra capacity, London could lose its ability to build business links with the rest of the world and to attract inward investment to the UK. When the Chinese, Brazilians, Russians and Indians look to set up a European headquarters, we want them to be thinking of
investing in London. They will not do that unless they can get to and from London easily.
"It would be a tragedy if London lost its premier position in global air travel to Frankfurt, Amsterdam Schipol or Paris Charles de Gaulle."
The City of London has also added its voice to greater aviation capacity in London by calling for an "improved aviation infrastructure", which is "urgently required in order to prevent London’s overall competitive position being undermined by limited connectivity, reduced service quality and price pressures", according to a City Aviation Study by the City of London Corporation.
"London's airports have experienced falling passenger demand – particularly business travel – since 2008 due to the economic downturn. At the height of the market in 2007, around 140 million passengers passed through London’s airports. However, after a small decline in 2008 as the global recession set in, demand fell to only around 130 million passengers in 2009."
Nevertheless, most firms interviewed suggest that their demand for air travel has now returned to positive territory and further increases will be fuelled by business growth. Delivering the additional capacity needed to meet this demand will prove challenging given the Coalition Government has ruled out the development of a third runway at Heathrow and a second runway at Stansted.
Stuart Fraser, Policy Chairman at the City of London Corporation, said:
"As a world leading business hub, London has long been a key national and international gateway for trade. We have traditionally benefited from excellent transport links to destinations all over the world but our competitive edge in this area is being eroded as we wait for decisive action to upgrade our aviation infrastructure."
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