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Written Question
Heathrow Airport
Thursday 13th September 2018

Asked by: Lord Grade of Yarmouth (Non-affiliated - Life peer)

Question to the Department for Transport:

To ask Her Majesty's Government what assessment they have made of the extent to which competition between existing and new terminal facilities at Heathrow Airport might be beneficial to airlines and passengers.

Answered by Baroness Sugg

The Civil Aviation Authority (CAA), the independent regulator, will consider the benefits of competition at Heathrow Airport. It has already explained the importance of considering alternative commercial and delivery arrangements for the provision of new capacity and has recently published a technical note on this subject in the context of expansion.

Government continues to encourage all potential promoters to engage with all relevant stakeholders on proposals that will facilitate the efficient and timely delivery of new capacity at Heathrow Airport.


Written Question
Heathrow Airport
Thursday 13th September 2018

Asked by: Lord Grade of Yarmouth (Non-affiliated - Life peer)

Question to the Department for Transport:

To ask Her Majesty's Government what process will be used to determine who will be the developer and operator of the new terminal at Heathrow Airport.

Answered by Baroness Sugg

The Airports National Policy Statement (NPS) does not identify any statutory undertaker as the appropriate person or appropriate persons to carry out the preferred scheme.

Any prospective developer would need to submit a Development Consent Order (DCO) application in line with the Airports NPS. Any application for a DCO will be considered carefully and with an open mind based on the evidence provided, through a public examination by the independent Planning Inspectorate, before any final decision is made.

The CAA has recently published a technical note outlining its approach to dealing with licensing issues raised by potential new developers of expansion at Heathrow.


Written Question
Heathrow Airport
Thursday 13th September 2018

Asked by: Lord Grade of Yarmouth (Non-affiliated - Life peer)

Question to the Department for Transport:

To ask Her Majesty's Government what steps, if any, they are taking to ensure that (1) the costs of Heathrow Airport expansion do not rise above £14 billion, and (2) that airlines, passengers and taxpayers will not cover any extra amount should costs rise above that level.

Answered by Baroness Sugg

The Government is clear that the Northwest Runway scheme at Heathrow will be financed by the private sector. Ahead of the decision to designate the Airports National Policy Statement (NPS) the Government and its independent expert advisors concluded that, so far as can be assessed at this early stage of the process, Heathrow Airport Limited (HAL) is able to privately finance expansion without Government support.

The Secretary of State for Transport set out a clear ambition in 2016 for airport charges to remain as close as possible to current levels in real terms. The Secretary of State has re-commissioned the CAA to oversee, and report on, how well Heathrow Airport Limited is engaging with the airline community on its plans for expansion with the objective of achieving value for money for the consumer. This follows on from a previous commission during which Heathrow announced the identification of potential costs savings of up to £2.5bn.

Ultimately, the CAA will determine the level of airport charges in lines with its primary duty to further the interests of consumers (passengers and freight operators). In its most recent consultation the CAA noted that there are “credible scenarios in which capacity expansion can be delivered affordably and financeably, with airport charges per passenger remaining close to current levels in real terms and line with the ambition expressed by the SoS [Secretary of State] on these matters in 2016”.


Written Question
Heathrow Airport
Thursday 13th September 2018

Asked by: Lord Grade of Yarmouth (Non-affiliated - Life peer)

Question to the Department for Transport:

To ask Her Majesty's Government when they plan to publish a breakdown of the costs of Heathrow Airport expansion.

Answered by Baroness Sugg

The Government is clear that the Northwest Runway scheme at Heathrow will be financed by the private sector without Government support. Heathrow is a regulated airport and as such any plans for expansion, including expenditure, are subject to scrutiny from both its airline customers and the regulator with updates expected as appropriate.

Ahead of the decision to designate the Airports National Policy Statement (NPS) the Government and its independent expert advisors concluded that, so far as can be assessed at this early stage of the process, Heathrow Airport Limited (HAL) is able to privately finance expansion without Government support.

The Airports NPS is clear that it requires a scheme that must be “capable of delivering additional capacity of at least 260,000 air transport movements per annum” – and it is for an applicant to demonstrate how the phasing of any scheme would deliver this capacity increase in its Development Consent Order application.


Written Question
Heathrow Airport
Thursday 13th September 2018

Asked by: Lord Grade of Yarmouth (Non-affiliated - Life peer)

Question to the Department for Transport:

To ask Her Majesty's Government whether they have been given assurances that the £14 billion proposed costs for the Heathrow Airport expansion cover the full capacity increase to 130 million passengers per year.

Answered by Baroness Sugg

The Government is clear that the Northwest Runway scheme at Heathrow will be financed by the private sector without Government support. Heathrow is a regulated airport and as such any plans for expansion, including expenditure, are subject to scrutiny from both its airline customers and the regulator with updates expected as appropriate.

Ahead of the decision to designate the Airports National Policy Statement (NPS) the Government and its independent expert advisors concluded that, so far as can be assessed at this early stage of the process, Heathrow Airport Limited (HAL) is able to privately finance expansion without Government support.

The Airports NPS is clear that it requires a scheme that must be “capable of delivering additional capacity of at least 260,000 air transport movements per annum” – and it is for an applicant to demonstrate how the phasing of any scheme would deliver this capacity increase in its Development Consent Order application.