BA boss rebuffs ‘myths’ over Heathrow expansion

The chief executive of British Airways has spoken out with detailed rebuttals of what he claims are ‘six myths’ promoted by those opposing expansion of Heathrow.

Willie Walsh is the latest airline leader to voice his views on the development of the London hub with a third runway in advance of the conclusion of a three-month government consultation process.

He called for decisions on the future of the airport to be based on hard evidence and produced a list of supposed issued to support his argument.

On the environmental impact of airport expansion, Walsh said: “The reality is that aviation produces about two per cent of global CO2 emissions and, allowing for industry growth, is forecast by the UN Intergovernmental Panel on Climate Change to be producing about three per cent by 2050.

“In comparison, road transport generates about six times as much CO2 and power generation and deforestation around 10 times as much.

“From 2012, long before a third runway can come into operation, aviation emissions will be capped by the European Union carbon trading scheme. That means that any airline wanting to operate more flights – from Heathrow or anywhere else – will only be able to do so by paying for equivalent emissions reductions elsewhere. So there will be no increase in overall carbon emissions as a result of a third runway.”

Addressing suggestion that a third runway would just mean more use of Heathrow by overseas transfer passengers, who bring no economic benefit to London or the UK, he said: “The reality is that a high proportion of Heathrow transfer passengers are UK residents, flying from Scotland and other UK regions to the national hub airport to catch connecting flights to long-haul destinations. Many of these are business people, making their journeys to sell British goods and services that create wealth and support jobs across the country.

“Transfer passengers who are not UK-based also make a critical contribution to UK business. Without seat purchases from overseas transfer passengers, many long-haul routes from Heathrow would be unviable.

“That would mean that passengers in London and the South East would lose direct flights to a swathe of destinations, putting businesses here at a serious disadvantage.”

Countering the ‘myth’ that it doesn’t matter if Heathrow stagnates because London has plenty of other airports with big route networks of their own, Walsh said: “The reality is that Heathrow is the only airport in the South East with a significant scheduled long-haul network.

“The dominant airlines at Stansted, Luton and London City are exclusively short-haul operators. Even Gatwick has a relatively modest long-haul timetable. From Heathrow, British Airways operates 75-80 long-haul services a day. From Gatwick, we operate nine.

“Heathrow is the long-haul airport for the South East, providing around 80% of all intercontinental services. You cannot provide global connectivity if all you do is shuttle passengers around Europe.”

Walsh also disputed the suggestion of shifting Heathrow’s short-haul flights to high speed rail, to do away with the need for a third runway.

“The reality is that apart from Paris, Brussels and Manchester, there are very few destinations where a rail alternative is feasible for passengers wanting to travel and return on the same day,” he said.

“Flights to near destinations such as Edinburgh, Glasgow, Amsterdam and Rotterdam take around an hour each way. By rail, they take around five hours. The time involved in train journeys to more distant business centres such as Milan or Madrid is barely worth contemplating.

“Many passengers on these short routes are not travelling city centre to city centre. They want to travel to Heathrow for the simple reason they are catching a connecting flight to somewhere else. So rail is even less viable as an alternative.”

With Heathrow having a higher proportion of business travellers over other London area airports, it is wrong to suggest that the vast majority of people flying from Heathrow as going on holiday, so an extra runway would just mean more flights that are not really necessary.

Walsh said: “Heathrow’s fliers split into three broadly even categories. A third are going on holiday, a third are travelling on business and a third are visiting family or friends. Heathrow has a much bigger proportion of business travellers than Gatwick, Stansted or Luton, reflecting its strategic importance to the economy.

“The recent growth of passengers visiting family or friends similarly reflects the increasingly international nature of London’s workforce. This aspect of travel is extremely necessary if London is to play its full part in economic globalisation  – and avoid being left behind.

“It is also true, of course, that most people would describe their own holidays as absolutely necessary. And the importance of inbound tourism to the UK and to the economies of the developing world is undeniable.”

Coming to the issue of Heathrow’s benefit to the local and national economy, Walsh said: “Without extra runway capacity, Heathrow’s route network will continue to shrink. In 1990, you could fly from Heathrow to 227 destinations around the world. Today, you can reach no more than 180. Meanwhile, Heathrow’s competitor hubs have raced ahead.

“The service sector accounts for 70% of UK GDP, and the UK is the world’s second largest exporter of services – particularly financial services. If Heathrow’s international connectivity continues to decline, UK-based businesses will lose competitiveness and be forced to consider relocating abroad.

“Meanwhile, businesses in the UK regions will find it increasingly difficult to attract inward investment or promote their products in new overseas markets.

“Good air links are essential to success in a global economy. Campaign groups like HACAN may not believe this. But the CBI, the TUC, the City of London, Government and a host of economic commentators do.”

by Phil Davies

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