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

60 minutes ago
Police have issued CCTV pictures of the suspect in the attack, which left a bus driver with a 3cm puncture wound to his eye (Picture: Metropolitan Police)

A bus driver was stabbed in the eye with a Stanley knife after a passenger ran in front of his vehicle in south London.

Read more
Ruislip was hit with torrential rain overnight leaving the town centre badly flooded this morning (Picture: Twitter/@souvikdash)

The Monday morning commute is not exactly most people’s idea of a good time but it was made a lot worse for those in west London this morning after flash flooding.

Read more
This Vauxhall Corsa flipped over and landed on its roof this morning in Lambeth. Shocked Twitter users captured the scene [Photo courtesy of @k111777]

A car has flipped over dramatically on Brixton Road, Lambeth.

Read more

TOP Stories

60 minutes ago
Police have issued CCTV pictures of the suspect in the attack, which left a bus driver with a 3cm puncture wound to his eye (Picture: Metropolitan Police)

A bus driver was stabbed in the eye with a Stanley knife after a passenger ran in front of his vehicle in south London.

Ruislip was hit with torrential rain overnight leaving the town centre badly flooded this morning (Picture: Twitter/@souvikdash)

The Monday morning commute is not exactly most people’s idea of a good time but it was made a lot worse for those in west London this morning after flash flooding.

This Vauxhall Corsa flipped over and landed on its roof this morning in Lambeth. Shocked Twitter users captured the scene [Photo courtesy of @k111777]

A car has flipped over dramatically on Brixton Road, Lambeth.

Promotions

Renault-Zoe

The Renault ZOE follows on from the introduction of the electric Fluence ZE and Twizy, but unlike the former, the Zoe was designed from the ground up as an electric vehicle.

When no simple way to find Real Ale was at hand, 4 Ale enthusiasts got together to allow anyone with a smart phone to find Real Ale no matter where they happened to be, this was the birth of the Perfect Pint app.

London24 have partnered up with The Week magazine to offer you a complimentary issue – delivered free to your door.

London Bloggers

Thursday, July 24, 2014
London comedians are preparing for Edinburgh (Photo by Jeff J Mitchell/Getty Images)

During these sultry July afternoons and endless balmy evenings the nervous musings of young comedians in London drift to dreams of triumph on the Edinburgh stage.

Thursday, July 24, 2014
Punchdrunk's The Drowned Man poduction came to an end on Sunday, July 6

If you’ve been wandering around bereft of purpose, a wet-eyed stare fixed on your blank face, then no doubt you too are as gutted as I am that The Drowned Man has finally come to an end.

Thursday, July 24, 2014
(Photo by Joern Pollex/Getty Images)

We’ve been called P.I.G.S.

Quizzes

How much do you really know about QPR legends like Les Ferdinand? Picture: Neal Simpson/EMPICS Sport

Test your knowledge of QPR’s greatest players with our fantastic legends quiz.

Read more
Quiz-1

Do you know your Lock Stock from your Long Good Friday, Sliding Doors from Shakespeare in Love?

Read more
How much about this great city do you really know? Take our true Londoner quiz and find out (Photo by Matt Cardy/Getty Images)

Do you know your apples from your pears? Take our Cockney quiz and see how much of a Londoner you really are.

Read more