Regional Airports

Lord Bruce of Bennachie Excerpts

Tuesday 15th July 2014 Westminster Hall

[Mike Kane]

Currently, flights from Manchester airport mainly go point to point. There is an argument for hub status, but I think that argument must be much further down the line than it is today.

Airport City Manchester will introduce a new concept to the UK, delivering up to 5 million square feet of new highly connected business space over the next 10 years. It has already attracted Chinese investment—the Beijing Construction Engineering Group has at least a 20% stake—and is set to attract even more connections at Manchester airport, facilitating further trade and growth. Airport City will take Manchester airport beyond its traditional use as a regional airport hub and transform it into an international business destination in its own right, providing a major regeneration opportunity for the surrounding area and helping to boost Manchester’s attractiveness as a major European business city.

[Sir Malcolm Bruce (Gordon) (LD)]

I congratulate the hon. Gentleman on securing this debate. I completely understand the case he makes for Manchester being the most important airport outside London, but will he acknowledge that air links are vital to areas such as mine in Aberdeen, where the shortest journey time to London by train is more than seven hours? British Airways’ withdrawal of our only link to London City airport is an indication of an airline that puts profit before service, given that the route is profitable, just not as profitable as other routes.

[Mike Kane]

Will the right hon. Gentleman bear with me for a few more minutes? I know many people want to talk about their regional airport, which is the focus of this debate. I will specifically mention airports that are represented by Members on both sides of the Chamber, which might be the appropriate opportunity for Members to get on the record. This is not my maiden speech, but I would like to push on with Manchester airport for a few more minutes.

Airport City provides an innovative and complementary offer to the region’s economy; with Media City and the city centre, it creates a modern business destination that will make full use of the existing infrastructure. The majority of workers and visitors will not drive to the airport; instead, they will walk, cycle, take the newly constructed tram, which will soon be in operation, or take a train or plane. It is estimated that the wider Airport City enterprise zone will create up to 16,000 new jobs over the next 10 to 15 years, including at University Hospital South Manchester’s medipark development. Airport City is likely to attract new long-haul airline routes to Manchester to support and serve the requirements of the global businesses based on site, which will in turn bring further growth, employment and destination options. Coupled with the extension of the Metrolink by 2015, Airport City will open up the south Manchester area and make it even more accessible for local people, creating employment opportunities and transforming the local community.

What else can regional airports bring? Manchester has established strong relationships with foreign airlines and brought significant investment to the region. Emirates and Etihad have their European call centres in the north-west. Etihad is one of the major sponsors of my football club, Manchester City, and is investing significantly in east Manchester, where the stadium is located. [Interruption.] I beg forgiveness from my hon. Friend the Member for Blackley and Broughton, who supports the team from the other side of the city. Manchester City’s new training complex will be completed in October 2014; it will include a £200 million football academy and a 7,000-seat stadium. Only last month, the leader of the city council, Sir Richard Leese, announced a new partnership with Abu Dhabi United Group, the club’s owners. The partnership with the city council will build more than 6,000 new homes in run-down parts of east Manchester as part of a £1 billion, 20-year deal—the single biggest residential investment that Manchester has seen for a generation.

There are many other examples of regional airports driving regional growth and jobs throughout the UK. From its modest beginnings as a world war two US air force base, Stansted has grown into the fourth busiest airport in the UK, serving 18.5 million passengers. It is currently the largest single-site employer in the east of England, employing more than 10,200 people in 190 on-airport companies and contributing more than £770 million to the local economy. East Midlands airport generates about £239 million for the regional economy and supports more than 8,500 jobs in the region. The east midlands is also a major base for manufacturers in the UK because of the proximity to the cargo connections provided by East Midlands airport. Most of the UK is within four hours’ trucking time of the airport. Aberdeen International airport provides 2,000 jobs on site and supports a further 4,000 Scottish jobs. Around 3.5 million passengers travelled from the airport in 2013 to more than 30 UK and world destinations. Leeds Bradford International was the fastest-growing UK airport in 2013, and it serves more than 70 destinations. It is Yorkshire’s international gateway and serves the largest metropolitan region outside London.

--- Later in debate ---

[Sir Malcolm Bruce (Gordon) (LD)]

I congratulate the hon. Member for Wythenshawe and Sale East (Mike Kane) on securing the debate, which has demonstrated a real interest in the subject. I also appreciate that he identified so many regional airports in some detail.

I had not intended to make a full speech, but local circumstances at the moment are of great concern to me. I put on the record that Aberdeen airport is a vital link for our oil and gas industry. It is a busy, expanding airport that offers flights to 50 destinations, more than half of which are international direct links, and access to a number of hubs—not only London, but Frankfurt, Copenhagen and Paris. All these links have been developed by an airport management who are keen to attract new business, have recently extended the runway and are currently upgrading the terminal buildings.

In passing, I have to say that it is a matter of great regret to me that about 25 years ago the terminal building was relocated from one side of the airport to the other. I protested at the time because I was campaigning to reopen the railway station next to the old terminal building, but was told that there was no future for railway links to airports and that there was more land on the other side. That is a matter of huge regret, because our airport gets totally road gridlocked at busy times of the day. That valuable link, which has been reopened—I got the station reopened—carries 750,000 passengers a year, in spite of being on the wrong side of the airport. That is what happens when there is no forethought in planning.

My concern, which I raised at Prime Minister’s questions last week and on which, I am glad to say, I got support from the Prime Minister, is that British Airways, having launched with a great flourish two years ago a direct link between Aberdeen and London City airport, is axing this service, without so much as a press notice, let alone any consultation with the local community. I only found out about it because I was alerted by a constituent who was trying to book a flight after the clocks go back and the winter timetable comes in, at the end of October, and found that the service was no longer available. That was the first time that anybody in the local community had been made aware of it. I have been in touch with the chamber of commerce, Oil & Gas UK, the Institute of Directors, local parliamentary colleagues and the entire business community, all of whom are completely stunned by the news and had no knowledge of it. Given the benefit that British Airways gets from the business travel that connects out of Aberdeen, it is at the very least pretty poor public relations and discourteous.

Questions have been raised about whether the route was actually loss-making. I am seeking, along with colleagues from all parties, a meeting with BA to try to get some explanation, a consultation and the possibility of reconsideration. I have to say that I am having some difficulty getting any response out of BA. It made a comment to the local paper to the effect that the decision was commercial and it was not prepared to discuss any details, but I take that as an indication not that the route was making a loss, but that there are other, more profitable routes to which BA prefers to transfer the planes. Unless BA proves otherwise, that is where I rest my case.

I have nothing against the business communities of Dublin, Glasgow or Edinburgh, all of which need to be properly served and which have important, good airports, but I question whether Aberdeen should lose its three flights a day so that Edinburgh can have 11 flights to London City alone, Glasgow eight and Dublin five. That is a demonstration of an airline that is simply looking at its own bottom line and not at its shared responsibility for business development—because, of course, this affects the economy.

I have had streams of contacts, including e-mails, from people saying, “This is such a wonderful service. It gives us a straight connection, quickly and efficiently, to continental destinations and to a flight directly to New York.” Much more to the point, is a much easier route into the City. I think that I am right in saying that pretty well every parliamentarian from the north of Scotland has used this service—we tend to travel together, so I hope that we do not precipitate any by-elections—and we have found it quick and efficient.

Let me just make a quick point about Heathrow, although I will not enter the “whether or not” debate: Heathrow is currently operating too close to capacity, with the consequence that massive delays arise from small disruptions. If anything happens at Heathrow, people can be delayed for three or four hours because of a 10-minute glitch somewhere in the system. For those of us who do not have to fly to Heathrow, the alternative of flying to City airport is a real advantage, which we crave and appreciate.

I am glad to have had the opportunity to put that on the record. I hope that British Airways reads this debate and acknowledges that it should at least engage with its customers in the business community, both to publicise its decision—and consult in advance to give people some opportunity to use it or lose it—and to indicate whether it is prepared, in the light of the representations being made, to reconsider. BA was anxious to tell us what a wonderful service it was, and last time I spoke to BA, it told us that it was pleased with the response, yet without even an announcement it suddenly terminated the service because it wanted to use the planes elsewhere. I contend that an airline as big as British Airways needs to behave much better towards its business clients and I hope that it reconsiders its decision.