Ten days after the release of Sir Howard Davies’s Airports Commission’s report, the profound implications of its recommendations are becoming clear.
The chance is there for the UK to prosper within a 21st-century global economy and to enhance our status at the heart of world trade. The alternative may be long-term decline.
At SEGRO we welcome the commission’s decision to recommend a third runway at Heathrow, and a detailed reading of Sir Howard’s 344-page report shows the importance he attached to its role in world trade.
The report recognises that Heathrow presents the strongest case for airport expansion and offers Britain the greatest strategic and economic benefits. A third runway would provide around 40 new destinations and more than 70,000 new jobs by 2050.
It stresses that aviation supports UK manufacturing, carrying high-value exports, particularly to emerging markets, and helping to secure the position of UK-based manufacturers in global supply chains.
Today about 40% of the UK’s trade with economies outside the European Union by value is transported by air; in 2014 alone, the total value of tradable goods carried through UK airports exceeded £140bn.
Heathrow accounts for more than £100bn of this, followed by Stansted, East Midlands Airport, Manchester and Glasgow.
In the report, a passage entitled “How air freight works” explains that air freight is used for goods that are relatively small, high-value, need to be shipped over long distances quickly and need to be delivered in controlled environments.
Freighter aircraft fly mainly within an operator’s distribution network, but “bellyhold freight” uses passenger services to expand this network. However, the extra time involved in transporting freight on and off aircraft means it is unsuitable for short-haul, tourist flights.
The UK’s strong services sector also plays a big part
in the commission’s recommendation, with financial services, insurance, creative industries, education and health all identified as being dependent on face-to-face engagement with customers for success.
Business passengers are time-sensitive, valuing direct connections, high frequencies and reliability of service and, once again, the commission identifies Heathrow as winning hands-down.
Crossrail will enhance services to the airport further from 2019. And eventually, with the HS2 connection at Old Oak Common in place, Manchester and Leeds will be within 90-100 minutes of Heathrow.
An expanded Heathrow will also provide many more connections to UK regional airports.
Over the next decade, around half of global economic growth will come from the eight largest emerging market countries. UK businesses must be able to reach the emerging and developing economies in Asia, South America and Africa, but without strong links with the UK, they are at risk of being cut off from us.
We have been falling behind our competitors for too long, as new direct routes to these emerging markets have grown from other European and Middle Eastern hubs.
Backing expansion at Heathrow means the UK will remain a global economic power, helping exporters to grow and attracting inward investment.
The Davies Commission also laid down a series of “red lines”for the new runway proposal. Night flights would be banned from 23.30-6.00, post-expansion; a legally binding “noise envelope” would set firm limits; an aviation noise levy would fund mitigation including insulation for homes, schools and other community facilities; and there would be a legal commitment to EU air quality limits.
Now is the time to get on with building the new runway to maintain Britain’s position as a global trade partner.
David Sleath, chief executive, SEGRO
