31 January 2011
City highlights pressures on London’s aviation capacity
Improved aviation infrastructure is urgently required in order
to prevent London’s overall competitive position being undermined
by limited connectivity, reduced service quality and price
pressures, according to a City Aviation Study update released by
the City of London Corporation today (31 January 2011).
London's airports have experienced falling passenger demand –
particularly business travel – since 2008 due to the economic
downturn. At the height of the market in 2007, around 140 million
passengers passed through London’s airports. However, after a small
decline in 2008 as the global recession set in, demand fell to only
around 130 million passengers in 2009.
Nevertheless, most firms interviewed suggest that their demand
for air travel has now returned to positive territory and further
increases will be fuelled by business growth. Delivering the
additional capacity needed to meet this demand will prove
challenging given the Coalition Government has ruled out the
development of a third runway at Heathrow and a second runway at
Stansted.
Stuart Fraser, Policy Chairman at the City of London
Corporation, said:
"As a world leading business hub, London has long been a key
national and international gateway for trade. We have traditionally
benefited from excellent transport links to destinations all over
the world but our competitive edge in this area is being eroded as
we wait for decisive action to upgrade our aviation
infrastructure.
"The government's aviation policy review should recognise extra
capacity is needed now even though it may require potentially
unpopular decisions. With the possibility of a third runway at
Heathrow and a second runway at Stansted currently blocked, other
options such as mixed mode operation should be seriously
considered. This would, however, only be a temporary fix.
"A new hub airport could offer a possible long-term solution but
such a project would take decades to become fully operational. We
are operating in a competitive market, where talented individuals
and institutions are highly mobile. London and the UK cannot afford
to stand still while our rivals across the globe are building for
the future."
Possible options explored in the report include: revisiting the
addition of a third runway at Heathrow, expansion of London City
Airport, mixed mode operations at Heathrow, the development of High
Speed Rail, the addition of runway capacity at either Stansted or
Gatwick, and the development of a new hub airport in the Thames
Estuary.
The study indicates that extra airport capacity at Heathrow
remains the preferred option for the City businesses as it
continues to be by far the most important provider of business
focussed connectivity – accounting for around 44% of journeys –
amongst the London airports, with growth at London City Airport
further expanding its role as a provider of connectivity to key
European destinations. Most consultees considered improved
connectivity, rather than increased size, to be the major priority
for future aviation developments.
Ends
Notes to editors
- Press enquiries:
Sanjay Odedra, Press Officer, City of London Corporation
Tel 020 7332 1835 / Mobile 07831 542856
Email
sanjay.odedra@cityoflondon.gov.uk
- About the City of London
Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
- About York Aviation:
York Aviation is a specialist firm of air transport consultants
providing consultancy services for the airports
business.