70% of UK businesses ‘support airport expansion’

Almost three quarters of UK companies back airport expansion, according to the results of a new study.

The findings show 70% of bosses in favour, but failure to grow airports such as Heathrow would adversely affect their businesses.

The report, entitled ‘High Fliers: business leaders’ view on air travel’, surveyed 500 Institute of Directors members and was run in association with bmi.

It also found that businesses are willing to pay more for air travel on environmental grounds.

Nearly two thirds agreed that air fares should be higher to ensure that the aviation industry pays its full environmental costs.

The average increase that company bosses felt would reflect the cost was equivalent to an extra £6.50 on £100 short haul trips and almost £200 more on a £3,000 long haul business class fare. 

Companies also predicted a strong growth in the business travel market, according to the study.

The findings were released ahead of the completion of government consultation into a third runway at Heathrow, bmi’s main base.

Business leaders believe demand for business travel by air will grow over the next three years with the fastest expansion on routes to destinations in the Asia-Pacific region.

Business travel within the UK is also important with nearly three quarters of members using flights for domestic business travel purposes.

IoD director general Miles Templeman said: “Business travel is the lifeblood of a prosperous and competitive economy. 

“Many businesses rely on good air services to keep in touch with clients, suppliers, and staff across the world. The contribution that this makes to economic prosperity must not be overlooked.

“Decisions about the future of aviation in this country must strike the right balance between the huge economic benefits of air travel and its substantial environmental costs.

“Satisfactory solutions must be found to deal with noise and air quality issues, and aviation should pay its environmental costs in full, in the same way as any other activity. 

“The best way of achieving this is for aviation to be included in a cap-and-trade scheme such as the EU emissions trading scheme at the earliest opportunity.”

He added: “The UK’s network of air transport services is a key strategic asset and a source of competitive advantage for the UK economy, and Heathrow is vital at its core. 

“Unfortunately Heathrow’s performance has become tarnished as it has been forced to handle rising demand with inadequate capacity, including the same two runways with which it started operations more than 50 years ago.

“Heathrow urgently needs the extra capacity to enable it to handle more flights, and we welcome the government’s recognition of the strong case for introducing this.”

Bmi deputy chief executive Tim Bye said: “As the second largest airline at Heathrow, bmi has experienced first hand the difficulties of operating out of the UK’s busiest airport and we have long been lobbying the BAA for improvements to its services and facilities.

“Heathrow airport continues to be a valuable business hub for UK industry and bmi’s regional network enables businesses to connect to Heathrow and beyond. 

“Unsurprisingly, the report shows that reliability is important to business travellers. They expect their airline to be punctual and we take this very seriously at bmi.

“We are encouraged by the findings of this report and are sure that the new Terminal One re-development at Heathrow will offer business travellers the much needed improvements they demand.

“We hope that the decision-makers involved in the expansion consultation will take notice of the needs of British business.”  

by Phil Davies 

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