Regional Airports

Robert Goodwill Excerpts

Tuesday 15th July 2014 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)]

I am particularly pleased to be present today, given that it is the day of the reshuffle.

I congratulate the hon. Member for Wythenshawe and Sale East (Mike Kane) on securing the debate on the domestic and international connectivity provided by the UK’s regional airports. The debate has been good natured and, by and large, we have all been on the same page. I am a big supporter of the UK’s local international airports, as they could be more accurately called. The hon. Gentleman talked eloquently about how important regional airports are not only for maintaining the UK’s air connectivity, but for jobs and economic regeneration throughout the country. I hope he will be encouraged to know that we have all those interests at heart.

I welcome the opportunity to respond for the Government to this important and timely debate. It is timely because the UK’s status as an international aviation player is at the forefront of the political debate and in the media. Although there may be differences in our approaches, 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 hub, which the Government believe to be of vital importance to the UK economy. It is important to remember that the UK continues to have excellent aviation connectivity, both point to point and through the London hub. We have the third largest aviation network in the world after the USA and China.

Domestic aviation connectivity within the UK, however, is also important to our national cohesion, and will remain so. In that regard, the Government have always made it clear that regional airports make a vital contribution to the growth of regional and local economies and as a way to provide convenience and travel choice for air passengers, as recognised in the Government’s aviation policy framework, published in March last year. The Civil Aviation Authority’s statistics for last year show that the UK’s regional airports handled 90 million passengers, or around 39% of the UK total, and services from regional airports operated to more than 100 domestic and international destinations.

I am aware that airports were impacted by the economic downturn, but now, just like our economy, many of our airports are seeing real growth again, thanks to our long-term economic plan. For example, Leeds Bradford and Belfast City airports each saw passenger growth of more than 10% between 2012 and 2013. We want to see that growth continue.

We warmly welcome the ambition of the UK’s regional airports, which are responding to local and regional demands by investing in their infrastructure to enable services to more destinations and better facilities and choice for their passengers. For example, Manchester airport is now the UK’s third largest, handling more than 20 million passengers per year, and its routes are expanding further, with Cathay Pacific starting direct flights to Hong Kong from the end of this year. The airport is also working hard to establish air links with mainland China. It has the only regular A380 service from an airport outside London—the daily service by Emirates to Dubai—and its £650 million city enterprise zone promises to create between 7,000 and 13,000 jobs.

Birmingham airport completed its runway extension this year, enabling larger aircraft to fly to more long-haul destinations. On 22 July, the airport reaches a significant milestone with a new air service to Beijing, the first from a UK airport outside London. I do not need to add that both Manchester and Birmingham airports will be served by High Speed 2.

Leeds Bradford airport recently completed an £11 million passenger terminal development to increase airside space by 65%. Glasgow airport has been busy over the past few years making handling preparations for additional passenger traffic during this summer’s Commonwealth games in the city, as well as for the first world war commemoration ceremony, which follows soon after. That is not all: ongoing investment programmes are also under way at other airports, such as Newcastle, Edinburgh, Belfast City and Belfast International, delivering additional improvements to airport capacity, airport facilities and the passenger experience.

I share the disappointment of my right hon. Friend the Member for Gordon (Sir Malcolm Bruce) at the discontinuation of services from Aberdeen to London City airport. The decision was a commercial one for BA, but Aberdeen also has 11 flights per day to Heathrow. I will, however, write to BA expressing disappointment that my right hon. Friend and his colleagues are having difficulty arranging a meeting.

The hon. Member for Strangford (Jim Shannon) made some points about Northern Ireland connectivity. I agree that Northern Ireland has particular circumstances that make air connectivity vital. Northern Ireland is well connected by air, with more than 18,000 flights per year between it and the rest of the UK. The two Belfast airports have connections to major London airports, including to Heathrow from Belfast City.

The hon. Member for Blackley and Broughton (Graham Stringer) made a number of points about bilateral agreements. With Europe, of course, we have an open skies policy, so there is no need for a bilateral agreement. When the UK negotiates bilateral agreements, we make it clear that there are other airports outside Heathrow and London. The aviation policy framework encouraged fifth freedoms from regional airports, and Emirates flies to a number of UK airports, including Manchester, Newcastle and Birmingham, with direct flights to the middle east and numerous onward connections.

Surface access to the airports is vital. The Airports Commission has highlighted many important investments in airport surface access that are already being put forward by the Government. The commission chair, Sir Howard Davies, wrote to the Chancellor of the Exchequer on 26 November about its recommendations on surface access to airports. The Treasury’s national infrastructure plan published on 4 December began the process of implementing the recommendations and referred specifically to the Airports Commission’s proposals for new work.

Key new elements of the programme are, for example, the enhancement of Gatwick Airport station with part funding of £50 million; further work to develop a strategy for enhancing Gatwick’s road and rail access, with the report due in the spring or summer of 2015; and work on developing proposals to improve the rail link between London and Stansted, the report on which we again expect in the spring or summer of 2015. It is also important to look at other issues, such as smart ticketing facilities at railway stations.

A couple of weeks ago, my hon. Friend the Member for Fylde (Mark Menzies) and the hon. Member for Blackpool South (Mr Marsden), who spoke today on behalf of the Opposition, came to see the Secretary of State to lobby for a passing loop on the line from Blackpool South to Kirkham and Preston. The Secretary of State is looking at that issue.

I welcome the potential improvements at Luton Airport Parkway station. I am aware of the problem of flights arriving late and people having no way of travelling from the airport. Surface access is also a particular problem at Leeds Bradford, an airport I have used on many occasions. Indeed, I was there on 1 May, when I experienced some ear-bending from the management about the possibility of improving access through, for example, a railway line reasonably close to the airport.

The tale of Manston airport is, I am afraid, rather an unhappy one so far, although I am heartened by the fact that the local authority is looking into what it can do. I spoke to the leader of the council last week, and she had received an 8,000-name petition. The Department is more than happy to help with any Civil Aviation Authority licensing issues.

The hon. Member for Na h-Eileanan an Iar (Mr MacNeil) raised the issue of public service obligations and start-up aid. We recognise that air connectivity is not a luxury for communities in the highlands of Scotland, but essential. In this year’s Budget, the Chancellor announced funding to allow start-up aid for new routes from regional airports handling fewer than 5 million passengers per year. In June, we announced support for maintaining air links between Dundee and London for the next two years, and a public service obligation was agreed with Dundee city council. The Department for Transport is working with the Treasury to develop guidance that will clarify how the Government ordinarily expect to interpret the European Union state aid guidelines on start-up aid for new air routes, and explain how the funding process will operate throughout the UK.

The Government have established the right foundations to move forward, gain consensus and secure the benefits that aviation brings to the whole nation. We are clear about the economic and connectivity benefits that our regional airports bring to regions, communities and businesses. In that context, I welcome last week’s announcement by the Transport Committee that it will conduct a short inquiry to examine policy and to make recommendations to the Government on the role of airports that handle fewer than 5 million passengers per year. The Committee’s objective in undertaking the inquiry is to ensure that that policy area is properly scrutinised and that the role of smaller airports in improving connectivity is recognised within Government.