Lack of airport capacity “costs UK up to £14billion a year”

11:13 15 November 2012

Heathrow Airport has released a report on aviation. Pictured is Terminal 5 at the site. Picture: BAA Airports Limited

Heathrow Airport has released a report on aviation. Pictured is Terminal 5 at the site. Picture: BAA Airports Limited

Photo © BAA Airports Limited. Strictly for BAA related articles only - strictly not for use in generic airport / aviation articl

The lack of capacity at Heathrow Airport is costing the UK up to £14billion a year, according to a report commissioned by the airport.

The research from Frontier Economics says that the UK’s connectivity needs can only be met by a single hub airport which is “home to British Airways”, meaning the expansion of Heathrow or the replacement of the site with a new hub airport.

The report, One Hub or None, sets out the current situation at Heathrow before arguing for a single hub airport.

It says: “International connectivity through a hub airport supports economic growth. UK businesses trade 20 times more with emerging markets with daily flights than those with less frequent or no direct service. In addition, the rate of growth in UK trade is substantially lower where daily flight connections with Heathrow are not available.

“Yet constraints at Heathrow - which is running at over 99 per cent capacity - mean that the UK is unable to serve growing international demand. Heathrow is permitted 480,000 flights a year. All four of Heathrow’s competitor European hub airports - Paris, Frankfurt, Madrid and Amsterdam - have enough runway capacity to serve around 700,000 flights per year.

“As a consequence Heathrow is slipping out of the Premier League of Europe’s international hub airports. Paris and Frankfurt will push Heathrow into third place in Europe within the next 10 years.”

Having two hub airports, or a split hub, will not work, says the report, which argues instead for just one hub airport.

It says: “Only a single southeast airport, home to British Airways, can operate as a hub.”

One Hub or None sets out three options for the UK government - doing nothing and letting the UK fall behind its “European competitors at the cost of lost growth and jobs”; adding additional capacity at Heathrow; or closing Heathrow and replacing it with a new hub airport.

Colin Matthews, Heathrow’s chief executive, said: “If anyone was still in doubt about the importance of aviation to the UK economy, today’s report should lay those doubts to rest.

“We’re already losing out on up to £14bn of trade a year – and that could almost double by 2030.

“The new work we are publishing today shows that only a single hub airport can meet the UK’s connectivity needs and the choice is therefore between adding capacity at Heathrow or closing Heathrow and replacing it with a new UK hub airport.”

Latest Stories from SNAP.PA

Kendra Wilkinson’s second trial in as many days didn’t go completely to plan.

Read more

Could Jake and Edwina be forming an unlikely romance? Or is there someone else after his heart…

Read more

It doesn’t get much more festive than posing with Santa and a dude in a reindeer costume.

Read more

Promotions

Gamucci is a global leader and premier brand of electronic cigarettes

Gamucci has an electronic cigarette tailored for every need! We have a range of both disposable and rechargeable electronic cigarettes suitable for all adult smokers. And for a limited time we’re offering up to 40% off.

Money saving Christmas gifts to add to your shopping list!

It’s nearly time to go on the hunt for Christmas presents, stuck on what to get for your nearest and dearest? We’ve picked out a selection of great deals to get you started and to help you save some pennies!

Protesters have been warned they are banned from setting up camp at the landmark.

John Cantlie features in the new IS video, in which he talks about a recent failed military attack.

From Britain First’s Facebook posts, you would assume they’d won the Rochester by-election. They didn’t, but they’re claiming it anyway.

At 100 years old, this was Ruby Holt’s first visit to the beach – and the first time she saw the ocean.

TOP Stories

Yesterday, 20:07
The statue of Nelson Mandela surrounded by security fencing in Parliament Square [Photograph by @OccupyLondon]

Around 100 protesters from activist group Occupy Democracy have descended on Parliament Square as they plan to ‘take it over’ this weekend.

Yesterday, 12:35
[Photograph by Charles Mieville]

Two men have been killed after a balcony collapsed in Cadogan Square, one of Britain’s most expensive streets.

Yesterday, 08:57
The body of a man was found inside the suspect's car, stopped in Evelyn Street, Deptford (google street view)

A murder investigation is underway after a man was spotted trying to hide a body in the Thames at Deptford Creek in the early hours of this morning.

London Bloggers

Friday, November 14, 2014
Bird says back up your data

What happened after a friend of mine lost basically everything he’d created in the last 5 years:

Thursday, October 30, 2014
The Appilepsy team: Phil Efstathiou, Alex Telek , Clarence Ji, Miklos Molnar, Joran van Apeldoorn

In Tech City, things move fast. And sometimes erratically. Like phones in the pockets of people having epileptic seizures.

Friday, October 24, 2014
The 91-year-old gave the cyclist a wallop

After Baroness Sharples bragged about walloping a cyclist, London24’s cycling blogger AViewOfLondon has this to say...