TheLocalYokel
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- Jan 14, 2009
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https://assets.publishing.service.g...chment_data/file/765253/aviation-2050-web.pdf
This government Green Paper was published just before Christmas this year and welcomes responses in its consultation.
The Green Paper ranges over many facets of the industry and I've picked out some that strike me as being of interest. It's important to say that a Green Paper is not as far along the line as a White Paper when it comes to government policy on a subject.
+ The government recognises the importance of rebalancing the UK economy through the economic growth of regions with airports having a 'crucial role' in this. The Green Paper mentions local airports such as Newquay and Norwich that serve their immediate catchments and regional airports like Bristol, Belfast International, Newcastle and Glasgow that serve larger catchments with extensive short-haul and some long-haul routes. There are also national airports that have influence well beyond their local catchment such as Edinburgh and Manchester that have extensive short-haul and long-haul networks that benefit a wide geographic area through more choice to passengers and encouraging more exports.
+ Domestic connectivity with Heathrow has fallen off in recent years partly because of improved road and rail access together with connections through foreign hub airports, but an expanded Heathrow will enable domestic links to be increased with a consequent benefit to regions' business, cultural and tourist links.
+ Any government intervention must ensure that evidence exists to support it with resultant market distortion kept to a minimum as this can have unintended negative effects on the market as a whole, incuding neighbouring airports or where subsidised routes replace commercially viable ones. Road and rail links must be taken into consideration when assessing total domestic connectivity.
+ Existing government interventions in in regional air connectivity, primarily through PSOs, have had mixed results and, by and large, cases put to the government have been of poor value with a lack of airline interest suggesting that demand is low on such routes with conventional economic benefits minimal. The government believes that reserving slots at appropriate times at Heathrow will secure hub activity there without the distortionary effects of PSOs. However, until a new runway is delivered at Heathrow the government proposes that it should update its current interpretation of the EU regulations to continue to support PSOs to London routes vital for social or economic development, and expand the scope of PSOs to support routes into such airports as Manchester and Edinburgh.
+ The government is considering how the previous round of 'start-up' aid has performed. It believes start-up aid has some benefits compared with PSOs where routes that appear to have commercial potential but are not operated have time to be built up into commercially viable operations. However, an internal review of the previous start-up scheme found the process questionable and currently the government is not willing to provide further funding support for start-up aid.
+ The government recognises the concerns expressed by the aviation industry on the impact of air passenger duty (APD) but it points to passenger growth of 35% at UK airports between 2010 and 2017. Without APD, aviation would be relatively under-taxed. APD brings in £3.4 billion each year. Although APD like all taxes remains under review, there are no plans to consult wider on APD other than establishing a technical working group to consider the practical and legal challenges to changing short-haul APD in Northern Ireland.
This government Green Paper was published just before Christmas this year and welcomes responses in its consultation.
The Green Paper ranges over many facets of the industry and I've picked out some that strike me as being of interest. It's important to say that a Green Paper is not as far along the line as a White Paper when it comes to government policy on a subject.
+ The government recognises the importance of rebalancing the UK economy through the economic growth of regions with airports having a 'crucial role' in this. The Green Paper mentions local airports such as Newquay and Norwich that serve their immediate catchments and regional airports like Bristol, Belfast International, Newcastle and Glasgow that serve larger catchments with extensive short-haul and some long-haul routes. There are also national airports that have influence well beyond their local catchment such as Edinburgh and Manchester that have extensive short-haul and long-haul networks that benefit a wide geographic area through more choice to passengers and encouraging more exports.
+ Domestic connectivity with Heathrow has fallen off in recent years partly because of improved road and rail access together with connections through foreign hub airports, but an expanded Heathrow will enable domestic links to be increased with a consequent benefit to regions' business, cultural and tourist links.
+ Any government intervention must ensure that evidence exists to support it with resultant market distortion kept to a minimum as this can have unintended negative effects on the market as a whole, incuding neighbouring airports or where subsidised routes replace commercially viable ones. Road and rail links must be taken into consideration when assessing total domestic connectivity.
+ Existing government interventions in in regional air connectivity, primarily through PSOs, have had mixed results and, by and large, cases put to the government have been of poor value with a lack of airline interest suggesting that demand is low on such routes with conventional economic benefits minimal. The government believes that reserving slots at appropriate times at Heathrow will secure hub activity there without the distortionary effects of PSOs. However, until a new runway is delivered at Heathrow the government proposes that it should update its current interpretation of the EU regulations to continue to support PSOs to London routes vital for social or economic development, and expand the scope of PSOs to support routes into such airports as Manchester and Edinburgh.
+ The government is considering how the previous round of 'start-up' aid has performed. It believes start-up aid has some benefits compared with PSOs where routes that appear to have commercial potential but are not operated have time to be built up into commercially viable operations. However, an internal review of the previous start-up scheme found the process questionable and currently the government is not willing to provide further funding support for start-up aid.
+ The government recognises the concerns expressed by the aviation industry on the impact of air passenger duty (APD) but it points to passenger growth of 35% at UK airports between 2010 and 2017. Without APD, aviation would be relatively under-taxed. APD brings in £3.4 billion each year. Although APD like all taxes remains under review, there are no plans to consult wider on APD other than establishing a technical working group to consider the practical and legal challenges to changing short-haul APD in Northern Ireland.
