New London hub airport ‘would need £30bn of public subsidy’

16:41 24 January 2013

File picture: Steve Parsons/PA Wire

File picture: Steve Parsons/PA Wire

A new hub airport in London could attract flights currently intended for Heathrow Airport - but would need £30billion of taxpayers money, it is estimated.

A report was commissioned by a group of MPs to find out if it would be commercially viable for a private investor.

The report, by Oxera, considered various hub scenarios, rather than any of the actual plans which have been put forward. Researchers did not look in detail at the expansion of existing airports.

The potential impact on Heathrow and other airports were also imagined as this would also have an impact on commercial viability. Compensation to Heathrow needed to be arranged in scenarios where it had to close. Landing charges plus operating costs, all based on current Heathrow usage figures, were also viewed. Policy options towards existing airports was another factor.

The closure of Heathrow was among the potential situations imagined by the researchers which would influence financial viability and demand.

If Heathrow closed, all its traffic would move to the new hub airport. If Heathrow stayed open, the new airport would soak up all unmet traffic and attract some of Heathrow’s existing demand.

Transport committee inquiry chairman Louise Ellman said: “The results suggest a new airport would require public investment and have considerable impact on Heathrow and other London airports.

“The research findings also shed significant light on the scale of investment required to deliver essential related surface transport links for any new airport.

“We hope this work delivers something new to a crucial debate.”

The MPs are set to use information in their ongoing examination of aviation policy.

The report did not look at whether Government support for a new hub would offer good value for money or to suggest what the overall social and environmental benefits could be.

Latest Stories from SNAP.PA

Tinchy Stryder’s song with the Chuckle Brothers has gone down a storm with fans.

Read more

Peta has asked One Direction to cut scenes featuring a chimpanzee from their Steal My Girl video.

Read more

These tweets say something about the people who tweeted them, but we’re not pretending to know exactly what.

Read more

Promotions

AGA Living Subscription

Every issue of AGA Living magazine is packed full of celebrity AGA owner interviews, interior and design features, ideas to inspire your culinary imagination, mouth-watering recipes and inspirational shopping ideas.

Dojo gives you hand picked recommendations for events, places and activities in London

Tired of always hearing about some amazing event in London after its gone, missing out on the best activities? That’s where Dojo comes in.

These tweets say something about the people who tweeted them, but we’re not pretending to know exactly what.

Getting the right balance between work and play is a tricky one, but rocky relationships really do play a part in underachievement.

Residents are being urged to calm down as the chances of contracting the disease are “close to nil”.

Local media report Scottish expat being gunned down after intervening during a robbery in Sao Paulo.

TOP Stories

Zaire enjoying her cake at London Zoo

This sweet-toothed gorilla celebrated her birthday in style - by filling her face with a special cake made by Great British Bake Off finalist Richard Burr.

14:24
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...

14:03
Police are keen to talk to this man who was seen leaving the building at around the time of the assault [Photograph from Metropolitan Police]

Police are hunting a pervert who pretended he was a plumber before sexually assaulting a schoolgirl in a Bethnal Green flat.

London Bloggers

14:24
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...

Wednesday, September 17, 2014
The cast, including Josie Lawrence and Mike Myers

Simon Collins catches up with the improv impresarios, who despite being the world’s longest-running comedy show with the same cast, have lost none of the razor-sharp wit:

Monday, September 1, 2014
Do you really need an explanation for that?! (Pic by Serena Marinelli)

If you’ve ever seen an Italian movie, you would probably know how important body language is in the culture.