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Business urges government to act to turn Davies recommendation into reality

Long awaited decision to recommend new runway at Heathrow is welcomed by business leaders but must be embraced by government to ensure that capacity comes on line swiftly.

Business leaders across the UK welcomed Sir Howard Davies recommendations to expand runway capacity at Heathrow and urged government to press ahead with a well-defined timetable for delivery.

Pro-aviation expansion business lobby group Let Britain Fly called on government to immediately “hit the ground running and deliver early decision” to give the green-light to a new runway at Heathrow and a clear timetable towards turning the decision into a reality.

“After the best part of three years rigorously examining all of the evidence the view of the Airports Commission is that Britain needs a new runway and that the best option is to expand Heathrow,” said Let Britain Fly director Gavin Hayes. 

Government should use this opportunity to immediately back the view of the Commission that a new runway is required, setting out a clear direction of travel towards a final decision,” Gavin Hayes Let Britain Fly.

“With Heathrow, our only international hub airport, already full for a decade and all of London’s other airports forecast to be full within the next ten years, there is no alternative but to now get on with it” he added. “First and foremost it’s now time UK political leaders put the long-term national interest, over short-term political needs.”

When the Davies Commission was set up by the Coalition government in 2013, the pledge was that action on the recommendation would follow swiftly. However the recent Tory manifesto was less forthright, stating simply: “We will … respond to the Airports Commission’s final report”.

Let Britain Fly highlighted that an expanded Heathrow was the clear winner in terms of jobs and growth with up to £147bn in economic benefit and 70,000 new jobs. It added that Heathrow, as Britain’s only international hub airport is also better placed to boost the UK’s connectivity with key growth markets such as Brazil and China. 

It urged the government to now set out a clear timetable to turn the recommendation into reality. 

“Whilst the Government will now want time to properly consider the findings of the Final Report it should use this opportunity to immediately back the view of the Commission that a new runway is required, setting out a clear direction of travel towards a final decision,” said Hayes.

“We are confident that when the Government makes that decision they will choose Gatwick as the only deliverable option." Stuart Wingate, Gatwick

“This should then be followed within six months by a statement that sets out a clear timetable for building the new runway. The Government should also commit to an early Parliamentary decision to take place by summer 2016 at the latest.”  

However, Davies’ recommendation for a tough package of impact mitigation measures was also welcomed with support by business leaders for a new independent Aircraft Noise Authority to help address the concerns of local people. 

Gatwick Airport CEO Stewart Wingate said that these measures would make it tough for Heathrow and insisted that  following the recommendation Gatwick was "still very much in the race" as a deliverable option.

“It is for the Commission to make a recommendation but it is of course for the Government to decide. So we now enter the most important stage of the process," he said.

“We are confident that when the Government makes that decision they will choose Gatwick as the only deliverable option. For instance, this report highlights the very significant environmental challenges at Heathrow such as air quality and noise impact. Gatwick will give the country the economic benefits it needs and at the same time impact far less people. It is quicker simpler and quieter. Above all - after decades of delay - it can actually happen.”

“The Commission’s finding that there is sufficient demand to justify a second additional runway by 2050 leaves the door open for expansion at Gatwick." Chris Choa AECOM

Business lobby group CBI also welcomed the report’s recommendation with director general John Cridland urging government to rapidly commit to a decision that would see “diggers in the ground at Heathrow swiftly by 2020".

“Growing airport capacity in the South East is absolutely critical to the whole of the UK’s economic future - it simply isn’t an optional “nice to do”,” he said.

“Each day the Government delays taking the decision, the UK loses out as our competitors reap the rewards and strengthen their trade links,” he added. “Creating new routes to emerging markets will open doors to trade, boosting growth, creating jobs and driving investment right across the country. Our research shows that eight new daily routes alone could boost exports by up to £1bn a year.

AECOM also welcomed the decision with Christopher Choa, UK director pointing out that as the only international air hub Heathrow was the logical and practical place to expand. 

“Every new destination with regularly scheduled flights at Heathrow supports 3,000 jobs. Growth of Heathrow’s international hub capacity is essential for the long-term resilience of London,” he said. “Swift, decisive action is now needed. Continuing indecision could stall the UK’s economic growth at the very time the government is seeking to augment it.”

“Even when the runway at Heathrow is built, we will need another one by 2030." Mat Riley EC Harris

 Choa highlighted that the recommendation did not rule out expansion at Gatwick and said that development of both sites would be beneficial for London and the UK.

“The Commission’s finding that there is sufficient demand to justify a second additional runway by 2050 leaves the door open for expansion at Gatwick. Like Heathrow, Gatwick is an airport that is also constrained by lack of runway capacity.

“The best way forward for London, the region and the country is to allow both Heathrow and Gatwick to expand,” he added. “These two airports are very specialised, with Heathrow the country's only international hub, and Gatwick the region's premier point-to-point airport. They do very different things, but expansion at both puts UK plc on the strongest footing. Expanding both airports is the most viable way to address the UK’s aviation capacity before London falls further behind its global competitors in Europe and the Middle East.

Mathew Riley, managing director, Infrastructure and Environment at EC Harris also highlighted that this decision to expand Heathrow was simply “one piece in the jigsaw that will aid the capital’s global connectivity”.

“Even when the runway at Heathrow is built, we will need another one by 2030. The published capacity of the London airports is currently 148 million passengers per annum, but by the time Heathrow’s third runway opens, demand for London’s airports will be in excess of 200 million. 

“We simply cannot afford to spend another 15 years debating where the next new runway should go; the decision must be made in the next five years so that London has two new runways by 2030. The focus now should be on both delivering the capacity to secure the capital’s competitive advantage, and maximising the impact of this investment to support further regeneration and to drive economic growth.”

ACE chief executive Nelson Ogunshakin added his voice to the call from business leaders for a quick decision on new runway construction. “If the UK is to remain at the forefront of the global economy, it must enjoy excellent connections with developed markets and be able to move effortlessly into emerging ones," he said. "Jobs, prosperity, even the prestige of the UK all rely on this and if we are to encourage businesses to establish and locate themselves here, to drive the economy on, to trade across the world, and provide employment for our population, a new runway is vital.”

If you would like to contact Antony Oliver about this, or any other story, please email antony.oliver@infrastructure-intelligence.com.