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The Minister of State, Department for Transport (Mr Robert Goodwill)
It is a great pleasure to serve under your chairmanship, Ms Vaz. First, I congratulate the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) on securing this important debate on regional airports and UK airports’ capacity. She has set out a strong case that regional airports are essential, not only for maintaining the UK’s air connectivity, but for jobs and economic regeneration across the country. I understand her frustration that the Government are having to take time to make important decisions, but it is vital that the process is robust, and that all environmental and economic factors are fully considered. I welcome the broad agreement that exists across the political spectrum on the importance of maintaining the UK’s position as a leading global aviation nation, which is vital to the UK economy. This is a timely debate, given the Government’s announcement last December on airport expansion in the south-east.
The Airports Commission set out a convincing case for new runway capacity in the south-east by 2030, which the Government have accepted. The Government also accepted the commission’s final shortlist of three schemes. It is important to get the decision right, so that it will benefit generations to come. That is why we will further consider the environmental impacts and continue to develop the best possible package of measures to mitigate the impacts on local people and the environment. We expect the package of further work to be concluded by summer 2016. Importantly, the timetable set out by the Airports Commission for delivering additional capacity in the south-east by 2030 will not alter.
It is important to remember that the UK continues to have excellent aviation connectivity, both on a point-to-point basis and through the London hub. After all, we have the third largest aviation network in the world after the United States and China. The Civil Aviation Authority’s statistics show that the UK’s regional airports handled around 39% of the UK’s air passenger total in 2014: around 92 million passengers. Services from UK regional airports operated to more than 100 domestic and international destinations, providing convenience and travel opportunities, and helping to reduce the need for air passengers and freight to travel long distances to reach larger airports.
It is heartening to see that many of the airports that were impacted by the economic downturn a few years ago are now, like the economy, seeing real growth again. Manchester airport, as mentioned by the hon. Member for Wythenshawe and Sale East (Mike Kane), is now the UK’s third largest, handling more than 20 million passengers a year. It has the only regular A380 service from a UK airport outside London and its routes are expanding further—Cathay Pacific is operating direct flights to Hong Kong and, starting this June, Hainan Airlines will operate four flights a week to Beijing. Those are the first direct scheduled flights between mainland China and a UK airport outside of London, worth at least £250 million in economic benefits to the UK. Indeed, my big new shiny railway will be coming to Manchester as well as Birmingham airports.
My hon. Friend the Member for Solihull (Julian Knight) mentioned Birmingham airport, which completed its runway extension in 2014, enabling larger aircraft to fly to more long-haul destinations. That has allowed greater capacity to destinations such as Dubai, Delhi and Amritsar, and some successful charter operations to Beijing. The airport celebrated its most successful year in 2015, handling more than 10 million passengers for the first time. That is not all. Ongoing investment programmes are also under way at other airports such as Edinburgh; Belfast City, which saw 2.7 million passengers last year, an increase of 5.4%; and Belfast International airport, which saw 4.4 million passengers, an increase of 8.9%.
I welcome last month’s announcement that Ryanair is to begin operating a new base at Belfast International from March with flights to Gatwick, and five other routes will follow. In December, I was very happy to announce successful routes under the regional air connectivity fund that allow routes between Carlisle and Belfast City and Londonderry and Dublin.
Like me, the hon. Member for Newcastle upon Tyne North was able to see at first hand the newly completed redevelopment at Newcastle International airport’s departure lounge when I had the honour to open it formally shortly before Christmas. It is worth mentioning two more bits of good news for the airport: United Airlines has announced it will repeat its non-stop Newcastle to New York Newark service next summer; and Newcastle has been named the UK’s top large airport in a nationwide poll of Which? magazine readers for the third year running.
Within the UK, airlines operate in a competitive commercial environment, and we consider that they are best placed to determine which routes they operate, and from which airports. We know that the commercial aviation market brings many benefits to air passengers. However, the Government also recognise that, because aviation plays an important role in connecting regions, there may be occasions when aid is necessary to protect certain existing air services that may be discontinued or to develop other services to airports where local economic conditions prove unattractive to airlines.
We are conscious of the possible risk of distortion to competition that could be created by Government intervention in the commercial airline market. That is why we have been careful in balancing the commercial imperative with the need to provide support for existing services and for new air routes from some of our smaller airports. Last November, the Chancellor announced that 11 new air routes from smaller UK airports would be supported with around £7 million of start-up aid over the next three financial years. Those routes, one of which will be operated by Links Air between Newcastle and Norwich, will begin operating this spring and will provide domestic links between England, Scotland and Northern Ireland, as well as international connectivity to France, Germany, the Netherlands and Ireland.
The Government have been asked why we cannot acquire or reserve slots at busy UK airports such as Heathrow for domestic services from regional airports, such as those in Northern Ireland. The allocation of slots at EU airports is governed by regulations agreed at European Union level and by associated UK slot regulations. Under the regulations, the process of slot allocation at Heathrow, Gatwick, Manchester and other slot co-ordinated airports in the UK is undertaken by an independent slot co-ordinator independently of the Government, the Civil Aviation Authority or other interested parties. The UK Government therefore play no part in the slot allocation process at Heathrow or other co-ordinated airports, and under EU regulations we are legally prevented from intervening in that process.
Unfortunately, time is pressing. I wanted to say a few words about air passenger duty, but no doubt there will be an opportunity in future. Indeed, it is a matter for the Chancellor, so I will come to a conclusion and allow the hon. Member for Newcastle upon Tyne North a chance to get the final word.
The Government believe that maintaining the UK’s status as a leading global aviation hub is fundamental to our long-term international competitiveness. We are clear about the economic and connectivity benefits that our regional airports bring to regions, communities and businesses. We have established the right foundations to move forward, gain consensus and secure the benefits that aviation brings for the whole nation.
Valerie Vaz (in the Chair)
I thank Front Benchers for their timely speeches.